I too had that problem.
before you do anything drastic check to see if your disc is formatted NTFS or fat 32. I think I had that problem back a few years ago and I had a fat 32 hard drive. If thats not the issue then do the following and see if that works.
A fresh install. Make sure you use the reg delete tool from Pinnacle's site to get all the bugs out!!
Then reboot and install from your disc.
Reboot and then go get your updated patches.
Hope this helps you out...