Hi, I got a fabulous response from Corel and it fixed my same problem! Here is what they sent me. The first step did not work alone, but may have been necessary for the second step to work properly. Good luck!
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We are working on a permanent fix for this issue. Use the following
workaround to allow launching of Paint Shop Pro Photo versions X1 or X2:
Delete or rename the Paint Shop Pro Photo XI database file: ImageDB.db.
Database file locations
On Windows XP:
C:\Documents and Settings\<username>\Application Data\Corel
On Windows Vista:
C:\Users\<username>/AppData/Roaming/Corel
Here are instructions to easily delete the ImageDB.db file.
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On XP systems, Go to Start | Run. On Vista systems, Click on Start button and then highlight the "Start Search" field.
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Type %appdata% and click Ok (or push Enter on keyboard on Vista systems).
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Double-click on the Corel folder.
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Delete* the ImageDB.db file and then close this window.
You should now be able to successfully run Paint Shop Pro Photo.
*NOTE: if you receive a message that
the file cannot be deleted or is in use, Restart the computer, then
immediately try deleting the file. It should delete fine after a
restart.
If Paint Shop Pro Photo X2 still hangs
or is slow responding, try the following: Do the following to delete
the Paint Shop Pro Photo X2 Database files. The program will recreate
the files upon next launch. First Close Paint Shop Pro Photo X2 if is
it running.
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Go to Start | Run, Type %temp% and
click Ok. (on Vista, click Start button, then highlight Start Search.
Type %temp% and then push enter on keyboard)
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On the Windows® Explorer Tool bar,
Click the Up Folder button. The Up Folder button looks like a folder
with a green arrow pointing up. If you don’t see it, Click View | Go to
| Up one level. (On Vista, click Organize | Layout | Menu bar. Once
displayed, go to View | Go to | Up one level).
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Double click on the Application data
folder. NOTE: The Application Data folder is a hidden folder. Make sure
you have enabled viewing of Hidden files and folders to see this
folder. We have included instructions* below for enabling this view.
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Double-click on the Corel folder.
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Delete all content in the Corel Folder and then close this window
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Try running Paint Shop Pro Photo X2 again and note how it functions.
* To enable viewing hidden files and folders do the following:
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Go to Tools | Folder Options.
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Click on View tab.
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In the large white area marked Advanced settings, check the "Show Hidden Files and folders" radio button.
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Click OK to accept this setting. You should now see the Application data folder as described above.
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