PE7 problems on Windows Vista with custom DPI

I "upgraded" from PE4 to PE7 from a purchased download of the combo package containing both Premiere and Photoshop Elements 7.  My old versions were Photoshop Elements 6 and Premier Elements 4 which worked fine on my Windows Vista Home Premium running on a quad-core Pentium with 3GB ram.  The new Photoshop Elements 7 seems to work just fine.  However, I am encountering numerous issues with PE7:
     1.  Frequent crashes due to running out of memory when trying to create a 5 minute movie from several small clips (original clips are .avi files totaling about 500MB).  Sometimes I get warning that Premiere is dangerously low on memory, and I can save and restart.  Sometimes crashes with no warning.
     2.  After several restarts, I was able to create the 5min combined video in mp4 format (iPhone 640x480), but the video does not play correctly (erratic skips, flashes, audio out of sync, etc., and generally just unviewable).  I repeated this entire process with my old Premiere Elements 4 and had no problems - no crashes, created video much faster than PE7 and resulting video plays just fine.
After much frustration, I found in the "fine" print of the system requirements for PE7 that it requires a "1,024x768 monitor resolution at 96dpi or less".  I'm running on a 1900x1200 monitor using custom scaling of 144dpi.  Is the high DPI scaling the cause of the problems described above?  (seems unlikely since PE4 works just fine but "upgrade" don't always work "better").  Anyone else have similar problems (with or without high dpi scaling).

Welcome to the forum.
I would not think that the scaling would be an issue, as it would affect the display of the GUI and maybe playback (though I would assume less so).
Now, for your Low Memory warnings, take a look at this ARTICLE on setting up your computer for NLE work. There is also a FAQ Article to see, as well.
My guess would be that PrE 7 just requires a bit more in the way of resources, than your PrE 4 did. You are probably marginal with PrE 4, and PrE 7 pushes you over the edge.
Good luck,
Hunt

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