Error Message: Sorry...serious error PRE 7 must shut down

PRE 7 was running well. In fact I edited four movies successfully.
But now whenever I attempt to Open Project or New Project I get the message:
"Sorry...serious error encountered...must shut down.
It is really frustrating to pay for a product and then not have it work.
Any suggestions will be sincerely appreciated.
Henry-11

I am running Windows XP. (latest version).
The properties window for my drives says:
C Drive
Used Space 27.3 GB
Free Space 205 GB
Capacity 232 GB
E (External Drive)
Used Space 27.3 GB
Free Space 205 GB
Capacity 232 GB
I use camcorder: Sony VX2000.
I have deleted all previously made (4) movies, hoping for a clean start and hoping that would help. It did not.
So now I don't even get a chance to load from the camecorder because when I click on New Project, I get the message: "Sorry..."
Since PRE 7 has worked in the past, I can only assume that somewhere in there I did something wrong to cause this problem.
Side note: I down loaded a tril version of PRE 8 to see if that would work. Same thing. I have since removed PRE 8.
I will most sincerely appreciate any help because I am a total computer dummie.
Note that I did update to the latest version of Quick  Time. Did not help.
I am so frustrated over this. I recently videoed a Puppet Show and gal is really on my case for the finished product.

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