I have been experiencing a similar problem after upgrading from Creator 2009 to Creator 2010, running it in W7 Pro64 with, yes, a Nvidia 8000 series graphics card. In general it is suggested to install the latest driver, which I did, but neither it nor the couple previous ones eliminated the overlapping/retention problem of photos within a slide-show WITH TRANSITIONS. Without transitions, no problems, by the way - but since I enjoy creating rather elaborate slide-shows , using quite a few tracks and a variety of effects, transitions are pretty much a 'must'.
Hence, the only solution for me was to exchange the graphics card, which I hated to do since I had to take out my otherwise very nice Nvidia Card and exchange it with a much lesser quality AVI card that was my spare, as in last resort! I notice the difference as in the negative, but I also notice that at least the Video Wave 2010 produces no more overlapping photos, no matter how many transitions I 'throw' at it. (PS. My computer is not a brand-name, but my own 'concoction', lol, with half the parts about 2 years old, the others anywhere between then and now.

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My question now would be (and mind you, as per suggestion within another topic here at
http://forums.support.roxio.com/index.php?showtopic=59007 I DID ask Roxio Support directly, explaining the issue as well as the possible reasons as explained by Roxio Experts within this Community, and received a reply telling me to...check out the Community and Knowledge Center for answers. Good Grief!!!) if anyone knows who would be the responsible 'party' to request appropriate changes from that will not require exchanging the graphics card, never mind the brand, as in general I prefer Nvidia over AVI.
Since the problem did not happen in Creator 2009 (which I was able to use in Windows7 all the way back to Beta almost a year ago) but started with Creator 2010, using the same computer and components, it must be something within the Creator 2010 that is disagreeing with the Nvidia Card. So, what next? Try Roxio Support again? Talk to the Nvidia people?
I don't want to give up Roxio Creator, but neither do I really want to downgrade my computers' components. I can't wait to put the Nvidia Card back in or, if necessary, purchase another one...but upgrading it, not downgrading.
I would appreciate any suggestions. Thank you so very much.