Adobe PSE 8 Can't Email Photos

Question

Hello.  I'm helping a friend who is running Adobe Photoshop Elements 8 on Windows 7 64 bit Home Premium.  He wants to email
photos from within the program.  However I'm hitting two different problems:
1) If I select "Windows Mail" as my email client then I get the message:
"Elements Organizer could not finish creating your E-mail message.  Alternatively, you can use the Adobe E-mail Service via the Elements Organizer Preferences Dialog."
2) Ok so I select Adobe e-mail service.  If I try that then when we try and hit next to send the message the program freezes.  A new hidden window spawns called "New Message".  It will sit like that forever.  If I kill the pse 8 "New Message" window then pse 8 unfreezes but no email is ever sent.
I do computer support for a living so I'm comfortable around one.  Here the things I tried:
1) Found an Adobe knowledge base that acknowleged a limitation with windows 7 "Windows Live Mail" (instead of Vista's "Windows Mail").  The KB had me inject a few registry keys that told your default mail client were the dlls were for windows live mail.  This did not resolve the issue.
2) Uninstalled/Reinstalled PSE 8. Still both problems remained.
3) Whacked every unneed applications/process still no love.
4) Checked for a proxy inteferring with adobe email service.  No proxy settings set
5) Reset the preferences file for PSE8
6) I setup a test machine at home with a fresh install of windows 7 and a fresh install of Adobe PSE 8.  The email through Windows Live Mail still didn't work.  I'm convinced its unsupported by PSE8 on Windows 7 64 bit but Adobe Customer Service told me otherwise.  Unfortunately I wasn't at the computer at the time I called them to try troubleshooting with them.  However the Adobe e-mail service did work on my test machine so there must be something preventing it on my friend's machine (permissions, corruption, dependency missing?)
I'm up for any suggestions. 

Answer 1

I have followed similar approaches as you have outlined in your post.  I spoke with the Adobe techs and was told Adobe is aware of the failing and I quote, "We are working on a fix and hope to have it implemented within the next six month."
Bad news that was two (2) years ago. As of this writing and unless a "fix" has been implemented that I am not aware of, Adobe PSE software will not run an Adobe e-mail program on Windows XP or 7.
I submit a working remedy that being to use one of the two (2) remaining alternatives included in the PSE 8 software package.
Not intending to be boring but to be sure we are on the same page, go to Edit, select Preferences, select sharing, in the e-mail Settings box I have selected the Microsoft Outlook option. I tried Windows mail and it gave my system a few problems so I went back to Outlook.
An annoyance is the Recipients once entered are entered in a temporary fashion and must be re-entered each time I shut the PSE 8 down. Another deficiency awaiting the miraculous cure that now appears to be two (2) years over due.
Please note, be sure to have Outlook mail up and running so you can monitor the transmission progress.
As an aside my system is running Windows 7.