This is the latset glich. When I import a simple .avi movie, I get the audio but the video is a coloful version of old static TV after hours. Nothing! The software must be corrupt so unless I hear otherwise, I'm going to do an uninstall/reinstall from the CD and say to heck with the update. It ran like a charm before the patch download. I still get the cryptic message to download a new MPEG2 codec but it's nowhere to be found. It ran MPG2's without a hitch up until the patch. Fix it guys!

Update:  This my answer to my problem. This worked. The problem is with the update. I completely uninstalled Magix MEP 14 and did a full reinstall with the CD. NO UPDATE! Now it runs like it did. This is how to fix it!