Did the program/shortcuts work before?
A few suggestions...
(1) Make sure the shortcuts reference the correct ".exe" file. Right click the shortcut -> select properties -> select the shortcut and then -> "Find Target"
(2) Try logging as Administrator to your box, find the videowave executable and try launching from windows explorer (i.e. double click on .exe file). For me the executable is "C:\Program Files\Roxio\Easy Media Creator 7\VideoWave\VideoWave7.exe" but your precise location may be different.
(3) If windows2k suppports it, try setting the "compatibility mode" to Window2K i.e. right click on the executable and select the compatiblity tab.. select Windows2000. XP supports this feature and I can't remember if W2K has it or not.