for any body who also had this same problem - I did the following - as directed by support:

Please make sure that you have logged in as an "Administrator".

1. Reset your display settings, screen area to 1024*768, color depth to 16 bit and monitor refresh rate to 60 HZ.

2. Please update your VGA card driver, sound card driver and capture card drivers. You may contact the computer manufacturer to get the latest drivers.

3. Please click on the link below to update DirectX drivers (DirectX 9.0c)

details.aspx?FamilyID=0A9B6820-BFBB-4799-9908-D418CDEAC197&displaylang=en

4. Increase Virtual memory:
a. Right click on "MyComputer"
b. Select Properties -> Advance
c. Click on "settings" under Performance.
d. Select "Advance"
e. Click on "change" under Virtual memory.
f. Select "Custom" and enter initial value as "512" and Max value as "3096".

NOTE: If your existing settings are higher than recommended then leave them as before.

5. Uninstall PowerDirector software:

a. Start--> Programs -->Cyberlink PowerDirector --> Uninstall PowerDirector
b. Start --> Run --> type "regedit" --> click "HKEY_LOCAL_MACHINE" --> click
"Software" --> click "Cyberlink" --> PowerDirector. Delete folder "PowerDirector".
c. Start --> Run --> type "regedit" --> click "HKEY_CURRENT_USER" --> click
"Software" --> click "Cyberlink" --> PowerDirector. Delete folder "PowerDirector".

7. Reinstall PowerDirector.

8. To avoid any compatibility issues, please close all
- Other software and utility applications
- Including virus scans, screen saver and
- Instant messaging software
- close any ANTI-SPYWARE installed on your system
- close any popup blocker installed before you launch PowerDirector.


I hope this helps someone else.........