I get this warning when trying to start any video related application. Warning - Codec MPEG-2 must be activated / No permission - Bad installation. How can I correct this problem? I have 32 bit Vista Home Premium OS and EMC 9 Deluxe.

You'll have to do a clean install. Follow the directions found here

When attempting clean install, step 3 says to delete theese files: app data\local or roaming do not exist. Common files\roxio shared, I was able to remove. The problem is: program files\roxio, I get "You need permission to perform this action". I am the administrator and I tried turning off the user account control. It asks for permission and I click ok, but the same message reapears. When I open the PF\Roxio folder it is still loaded with folders, sub folders and files. I used, windows install clean up to remove everything as per step 1.

Try moving the folders it won't let you delete to your desktop,rebooting and then trying to delete them from the desktop.
Another thing is the Windows Install Cleanup Utility is not a replacement for Add/Remove.A/R is for removing the things installed for a program,files,folders,registry entries and such.
All the WICU does is remove things related to the install routine,telling Windows the program is no longer installed.There will be lots of stuff left if all you run is the WICU.Run the Add/remove from the Control Panel first and then run the WICU and if any entries are there remove them.This keeps Windows from thinking the program is still installed when it really isn't.On top of that most uninstall programs don't get everything.That's the reason for going in and manually deleting things per the instructions.

I used the WICU first. I was missled by the OR in the clean install instructions (ID 000127CR), where it said remove programs with A/R OR WICU. I made the wrong choice. I still have some programs that I can remove with A/R but I am not sure if I should. They don't say Roxio or Sonic, they are: Xingtone Ringtone Maker, Sight Speed, DivX, DivX Converter,
Player and Web Player. I am fairly sure that they are part of EMC 9 but I don't want to make any more errors. There are no other programs in the A/R list that are either Roxio or Sonic to remove.

Thank You for your help.