Hi Sanjit,
Let's see if this little issue can be sorted as well.
The following suggestions are aimed to remove photonow from your PC and then re-install it and PD together.
1. Uninstall PowerDirector
2. Go to Add or Remove in the Control Panel and uninstall PhotoNow! (if present)
3. Restart your computer
4. Go to: C:\Program Files\CyberLink\ and delete the PhotoNow directory
5. reinstall PowerDirector
The suggestions I have given should not harm your PC or effect PowerDirector - you carry them out at your own risk.
After what i have suggested has been carried out you should have PD working and PhotoNow should also work okay.
let me know how you get on.
Dafydd