I've tried everything...
Even unistalling everything (PD6, QT, DivX player, DivX codec, ETC ETC... )
and reinstalling...
Same error... Click produce - (create file) Next - CRASH.

Ok...
So I started over... Clicked produce - Next ,
after EVERY edit to make sure the same thing wouldn't happen again...
And it did! But I narrowed it down to the exact thing that causes the crash:
It's one particular clip that causes the crash: without it, no problems, as soon as I put that clip in, the produce action crashes before u get to pick format.

It's a WMV file created with windows movie maker, from an asf file. The asf file is a recorded live stream that may have been "broken" somehow by a connection stop while recording..
Is there anything I can do to make this file work with powerdirector? I only need about 4 seconds of it...

I'm glad I read your post because the EXACT thing happened to me!

I imported a series of 7-8 video files - all but one was an .avi file. The only different one was a .wmv file. When I got ready to burn to a disc, it gave me a "burning failed - error 0". I took out the .wmv file and it burned perfectly.

I worked around it by re-saving that file as an .avi file and slid it back in the project. It burned perfectly!

Must be a bug . . . .