I get the message "Cannot open because this project was created with a newer version" whereas I do have the latest 2014 version installed on my PC

To provide all the info, I have created this project on my Desktop with Mercury engine and I'm now trying to open it on my laptop on which I don't have a powerful graphic card - ad therefore no Mercury Engine. Could that be the problem? Thanks.

Open Premiere on you desktop and your laptop and check the build which is under Help/About Adobe Premiere Pro.
MPE has no part in this.

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