I actually have a WORKING solution!! This is the e-mail that Fisher Price Customer service sent to me after 3 calls to them, 1 to Microsoft:
"After review of the logs you sent to us, your video card NVIDIA GeForce
FX 5200 was last updated on 5/16/08. Please contact your video card
manufacturer for an updated driver. Also, inquire if your card is
compatible with DirectX 9 and DirectX 10. The Digital Arts and Crafts
Studio requires DirectX 9 or higher to operate. You will then need to
sign on to your computer as the administrator and update your video
card." (Make sure your video card is compatible and the drivers are up to date.)
to scan your computer for necessary updates and make sure you check the
"Software Updates" that are available. (Not just the critical updates)
You will want to download and install ALL updates relating to the .NET
Frame work. (Including the newer versions)."
(I just went in and installed all the updates that were waiting for me- except for things that I know I don't want, like the new IE)
"Your DXDiag is showing a DirectX error, please reinstall DirectX from the DACS installation disc.
Insert the DACS CD, and then cancel the installation when it starts.
Go to My Computer, locate the DACS CD, right-chick to Explore, locate and click into the DirectX subdirectory.
Locate the file DXSETUP.exe and launch."
(Check to see what version of DirectX you have. Even if you think it's up to date, it may be a good idea to install the version on the CD...)
I believe either reinstalling DirectX or the Windows Update saved me. I'd been having issues with Windows XP before this because remnants of my Windows 98 were hanging around and ruining things. Something in my DirectX had been creating errors as well, even though it claimed NO PROBLEMS WERE FOUND...
I don't know. I just did everything, crossed my fingers, and now my little sister has her Arts & Crafts Design Studio! I hope if anyone is still checking this, this solution helps them, too.