Got a Reply back from tech support:
Regarding your issue, please follow the suggestions mentioned below:
(1) Please make sure that the DirectX is upgraded to version 9.0.
(2) Update your VGA and sound card driver from the web site of the card manufacturer.
(3) Then try the following way to re-install PowerDirector:
a.) Start--> Programs -->Cyberlink PowerDirector --> Uninstall PowerDirector
b.) Start --> Run (keyin "regedit") --> HKEY_Current_User --> Software --> Cyberlink --> Power Producer --> delete the folder.
c.) Start --> Run --> type "regedit" --> click "HKEY_LOCAL_MACHINE" --> click
"Software" --> click "Cyberlink" -->Delete "Cyberlink" this folder
d.) Delete C:\Programs Files\Cyberlink
And reboot your PC.
After this, please install your PowerDirector 3.0.
(4) Restart the system.
(5) Now, download and install the latest Update patch related to PowerDirector 3.0 through the following link:
http://www.gocyberlink.com/english/d...d=171&ProdId=4
(6) Also change the display settings.
(7) In order to avoid most of the compatibility issues, please close all other software and utility applications including virus scans, screen saver and instant messaging software when you use PowerDirector.
Also check in the Task Manager for Nero, Easy CD Creator, DirectCD.exe and any other unnecessary application or burning software and End Task them if found.
(

Now try to launch PowerDirector and then burn the content. Please make sure that on the "Final Output" click on the "Configure" button and reduce the "Recording speed:"
Hope this helps someone else.