Thanks Big Booger. I think the problem was my system specs= you are right.
Initially my system was the HP Pavilion 8519 using Pentium 3. I did not realize its not compatible for XP.

Now my sys is Pentium 4 (1.7 Ghz) ASUS P4S533 ACPI motherboard and Sparkle Nvidia GEForce 2 MX400 (64MB) VGA with 512 MB DDR Ram.

Now it's ok. I just purchased the Adobe Premiere 6 and trying it out. But have to admit it's a bit complex for a novice like me. I just play with my Sony DV to record family events (like my Wife's birthday or parents' aniversary) and make them into VCDs... No professional stuff. Thats why Studio 7 was easier for me.

Anyway, thanks a lot 4 the help.