I have IR 7, and recreated the problem! Here is the remedy!
If you don't think you have MovieMaker2 on your drive (if you didn't install it), you should have the installation disc for it with the WindowsXP Home box you bought! If you don't have it you can go to:
http://www.microsoft.com/downloads/d...DisplayLang=en
to download it!
Install it before proceeding! If you have it, open it!
1. Import the original file (the one you want to edit) into Windows Movie Maker 2 via the import option on the left (in the "Capture Video" menu)!
2. Then, drag the imported video down to the grey-outlined-window in the section on the bottom of your screen.
3. Now, in the "Finish Movie" menu -- choose "Save to My Computer"
a. Choose a name for your movie file -- click on "Next"
b. Choose the "Other Settings" radio button -- click on the down arrow to the right. Scroll down to "DV-AVI" and click on it to choose! -- Click on "Next". This saves the movie in the default folder "My Videos" in the "My Documents" folder in your "Documents and Settings" on your "C" drive and this will start saving the movie in a ".avi" format!
I think Image Ready code prefers this file type! Anyway, Open up IR and open the new file. You will be given an option (see picture below) -- Try messing with the "Limit to Every" settings! Use different frame amounts (depending on Original File Size)!
What I mean by this is--Don't just choose the "From Beginning to End" radio button! (Unless your file is rather small -- 500KB-1MB) Doing this eats A TON of resources!! Try choosing every 2nd or 3rd frame first! If you find that this still eats up a ton of memory (resources) try choosing a different frame setting like every 10th! This decreases the amount of memory used for importing and let's you have more memory to do modifications!!
I hope this works for you!
anyone familiar with image ready? 
Linear Mode
