PE 10 - won't start up - says display.dll is fault module

My system is a Dell Vostro 3750 laptop
4 gig ram
Intel i5 2.4ghz
500gb Hard Drive
64-bit Windows 7 SP1
Graphics: Intel HD Graphics Family / NVIDIA GeForce GT525M
I have a second screen plugged into the VGA port, it's an Acer 22" LCD.
When I open PE 10 it brings me to the splash screen and when I click on 'new project' it crashes, with the error below:
Problem signature:
  Problem Event Name:    APPCRASH
  Application Name:    Adobe Premiere Elements.exe
  Application Version:    10.0.0.0
  Application Timestamp:    4e791009
  Fault Module Name:    Display.dll
  Fault Module Version:    6.0.0.0
  Fault Module Timestamp:    4e78fee0
  Exception Code:    c0000005
  Exception Offset:    00000000000230bc
  OS Version:    6.1.7601.2.1.0.256.48
  Locale ID:    1033
  Additional Information 1:    ceb1
  Additional Information 2:    ceb18ffac49ee9446e74d894cfb4b4db
  Additional Information 3:    a6f0
  Additional Information 4:    a6f009316aeeeb289b1c7014c1d50d50
I have the latest QuickTime installed, and everything (windows) should be up to date. I updated the NVIDIA driver to one dated 2/29/12 (the latest on their website).
Any thoughts or suggestions are welcomed!

@Bill Hunt - that file is located in c:\windows\system32\
@John T Smith - Supposedly, the computer will switch between the graphics devices, in fact you can choose when you run a program, which device to use. Could be the problem, but as the computer is new, I'm looking for another option perhaps before messing with the BIOS.

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