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I had a similar problem with Coreldraw 8. I used it successfully for years and loved it on varoius version of Windows, currently XP. I installed Coreldraw 12 and still had Corel 8 on the computer.
Now the problem: Corel 8 and Corel 12 could not open the Corel 8 clipart disk #2, only just down to the folder level. When I right clicked on the Corel 8 disk #2 clipart folder and checked the Path Properties it gave me a path other than the correct clipart disk location (in my case it should have read E:) BUT it was some weird location like MNfisherman referenced above and read: C:\Documents and Settings\AllUsers\Documents\Corel.! What the?! I knew the path should have read E: to access the clipart since the clipart was on the disk and in my CD tray, so I uninstalled Corel 12 thinking that was the problem since 8 had worked fine, then checked the clipart CD again but still no luck.
I then uinstalled Corel 8, so now I had no Corel program on hard drive. I put the Corel 8 clipart disk #2 in the computer knowing it would not open the clips but just to see if I could get beyond the folder level to see if the clipart files were there and yes I could. (I could only read the names of the files at this point because no Corel on computer) So I only reinstalled Coreldraw 12 figuring the later version would open the older version clipart and Success! It worked. I think my problem had something to do with the Corel 8 MF indexer, but I'm not sure. I had a red semi circle (like the Corel Set Up Semi circle) on all of the clipart folders instead of the regular yellowish fold so thats why I think it had something to do with indexer or other type of setup conflict). Now all of my clipart folders appear normal being the regular yellowish color folder. I suggest using a clean slate by unistalling all versions(Makesure you shut down the computer after each uninstall to get ridof all of the componentsof the program and then restart the computer) and then only reinstall the newest version. Hope this helps. Good Luck
In short you need a lot of memory for doing such things in Corel and many other applications. Operating systems are not what they used to be and every driver and every option enabled uses more and more of the precious RAM capacity so the only option is to get more RAM into your system. You should try to get 4Gb and this operation will go ahead with no problems.
The solution is to increase your virtual memory size...
Considering Win XP SP2 system.. the following procedure may be used to increase ur virtual memory / page file size...
Right click 'My Computer' --> Properties --> 'Advanced' Tab --> 'Performance' Settings --> 'Advanced' Tab --> 'Virtual Memory' Change --> Type in a custom size of 1024MB or something like that (not too much) --> Press 'Set' --> Close the windows --> restart -->DONE!!!