Video Edit Magic uses DirectX 8.1 or higher. For Video Edit Magic to run smoothly, DirectX 8.1 or higher must be properly installed.
To diagnose DirectX's installation on your system:
Select `Run' from the start menu and type `dxdiag'. You should be presented with a DirectX diagnostic tool.
1) Check for the current DirectX version under the `System' tab.
2) Check for the text "No problems found" under all the other tabs.
3) DirectX may also fail to function correctly when applications like Microsoftr NetMeetingr are loaded. You may also try to close NetMeeting.
Also make sure that Video Edit Magic has rights to create files in the current user's temporary folder and in the install folder.