That makes sense to me, it always fails during the "Record Menus" process. To answer your earlier questions. The USB connector I am using came with Roxio Creator 2010 Special Edition. A couple of years ago I transferred several VCR tapes to DVD using that program with no problems. We found a few other tapes in the basement that we were going to transfer to DVD using Creator NXT and am having the problems listed above. Here is the process I have been following: I record the VCR video to the computer using the "Capture Video" option. I then have been editing the .avi file with the "Edit Video - Advanced" option. I Then use the "Create DVD" option to burn video info to a DVD. I have tried 4 different VCR tapes, both the ".avi" and ".dmsm" files and they all error at the same place. All recordings are less than 40 min so there should be no issue with file length. The "Burn Project" window shows "Open Project", "Encode Movies",'Encode Menus" with a successful check mark. During the record menus step the DVD runs however it keeps changing speeds. Then all of a sudden a check mark appears on the Record Menus and Complete at the same time. And the error message "Failed to start the image writing operation Error while burning Image" error appears. Nothing was written to the DVD. Just for kicks, I tried the "Copy and Convert Video" Option under "Edit and Transfer" and that completed successfully. Video is not the best in the world but at least it completed.