Elements 8.0 has stopped working and closes

In the video effect panel, the simple act of scrolling down freezes de app and the message
Elements 8.0 has stopped working appers and windows closes the app.
event viewer
Faulting application name: Adobe Premiere Elements.exe, version: 8.0.0.0, time stamp: 0x4aa5c87c
Faulting module name: nvSCPAPI.dll_unloaded, version: 0.0.0.0, time stamp: 0x4a891469
Exception code: 0xc0000005
Fault offset: 0x37b75ce4
Faulting process id: 0x15c8
Faulting application start time: 0x01ca6ac334f177cc
Faulting application path: C:\Program Files\Adobe\Adobe Premiere Elements 8.0\Adobe Premiere Elements.exe
Faulting module path: nvSCPAPI.dll
Report Id: d3c67914-d6b7-11de-aed1-001a4d9b019b
There is a message at the lower left coner saying display performance will be poor due to incorrect operating graphics card or driver!
This message is always there.
The problems happens with all project with Apple MOV file from my Canon SD780 a 720 30 frame H.264 file
With a project empty (no clips) imported the problem does not happens. As soon as you import a file the error happens.
This is a brand new W7 install 2 HD SATA separate from the DVD IDE channel.
Swapp file also separate in the second HD.
The videos were imported from the folder since i already had the files before i bought Elements
The preview of the mov files (just open the file without any editing) in Elements is very choppy. In Windows (in QuickTime) it is perfect and uses only 35% of CPU
Latest driver applied and KB kb402534 followed
[Display]
Processor:        AMD Athlon(tm) 64 X2 Dual Core Processor 5000+ (2612 MHz)
Operating System:    Windows 7 Professional, 32-bit
DirectX version:    11.0
GPU processor:        GeForce 8500 GT
Driver version:        191.07
Stream processors:    16
Core clock:        500 MHz
Shader clock:        918 MHz
Memory clock:        400 MHz (800 MHz data rate)
Memory interface:    128-bit
Total available graphics memory:    1023 MB
Dedicated video memory:    256 MB
System video memory:    0 MB
Shared system memory:    767 MB
Video BIOS version:    60.86.34.00.13
IRQ:            16
Bus:            PCI Express x16
[Components]
nvCpl.cpl        2.7.170.15        NVIDIA Control Panel Applet
nvCplUI.exe        2.7.170.15        NVIDIA Control Panel
nvWSS.dll        8.16.11.9107        NVIDIA Workstation Server
nvViTvS.dll        8.16.11.9107        NVIDIA Video and TV Server
NVSTVIEW.EXE        7.16.11.9062        NVIDIA GeForce 3D Vision
NVSTTEST.EXE        7.16.11.9062        NVIDIA 3D Vision Test Application
NVSTRES.DLL        7.16.11.9062        NVIDIA 3D Vision Module (4512197)
NVMCTRAY.DLL        8.16.11.9107        NVIDIA Media Center Library
nvDispS.dll        8.16.11.9107        NVIDIA Display Server
NVCPL.DLL        8.16.11.9107        NVIDIA Compatible Windows7 Display driver, Version 191.07
NVCUDA.DLL        8.16.11.9107        NVIDIA CUDA 2.3 driver
nvGameS.dll        8.16.11.9107        NVIDIA 3D Settings Server
Any solution?
thanks

With the new nVidia drivers, the first thing that you will want to do will be to go to the nVidia console and disable 3D Sterevision. No Adobe program can use it. It is designed for gamers with the 3D Stereovision goggles.
If that does not fix things, go back to the console and disable PhysX. It too is a gamer module.
Good luck,
Hunt

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Elements 8.0 has stopped working and closes

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