Insufficient resources.... The problem points to your PC being at fault NOT the software.
You still haven't stated what PowerDirector you are using! . You've now indicated you cant produce an mpeg - ummm.... I think you need to look at your PC build data.
Go to:
Start Menu/Run/
Type in DxDiag
Click OK
In the display select "Save all information"
This will be a text file.
Attach it to your next posting.
Dafydd