I tried all of suggestions in this thread to no avail, however running the update mentioned in this post and restarting the computer finally worked: http://forums.support.roxio.com/index.php?showtopic=4194
Note: the program must be run as Administrator, not just a user with administrative privileges. To do this without logging off do this:
1. Start > Run
runas /user:%computername%\administrator "c:\Program Files\Internet Explorer\iexplore.exe"
2. In the IE address bar type: C:\path\to\downloads\pxengine1_08_34a.exe