Premiere Elements 9 conflicting with NVIDIA GeForce 7500LE?

I am editing home video using PE9.  When I attempt to run the program I get one of two error messages (sometimes I get both together) within moments of adding media to the project or editing media.  1.  "Display Driver NVIDIA window kernel mode driver, version 260.99 stopped responding and has successfully recovered." and/or 2.  "NVIDIA Open GL driver lost connection with the display driver and is unable to continue.  The application must close.  Please visit NVIDIA.  Error Code 8."  In either case PE9 either locks up or shuts down and I lose my work and any progress made that wasn't saved.  I have been able to edit  a short project.  But it is maddening.  Add media, save, crash, restart, edit a point, save,  crash, restart etc....
I can edit video with other software by NERO and MS.  But I prefer PE9.  I HAVE udated both PE9 and my NVIDIA drivers to the most current versions.  I HAVE searched both companys' knowledge bases and have not been able to find a resolution.  I did notice that the most recent driver update from NVIDIA addressed known conflicts between their driver and Creative Suite 5.  But the driver hasn't made any improvement.  I did chose to use software rendering instead of hardware in the options for PE9.  And that has helped a little.  But there hasn't been an appreciable improvement.  I had PE8 prior to 9 on this system and did not have this problem. 
I am using a HP Pavillion m7667c with intel dual core, MS Windows 7 64b, NVIDIA GeForce 7500LE with the most recent driver (from 10/2010).  I have plenty of HDD space and plenty of memory.
Any advice would be appreciated.  Heck I would even take recommedations for a new graphics card that would fit a PCI slot. 

Neale:
That is very helpful.  I already had a current version of QuickTime so I don't think that was the problem.  Disabling my internet connection and disabling my anti virus program (Avast) improved the function of the program.  I was able to use it for :30 without a breakdown.  I will try it some more over the next few days and see if the improvement holds.
Of course it would be nice to be able to remain connected to my network as much of my media is on my home server.  But I'll take what I can get at this point.
Thanks
Tom

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