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My computer continuously freezes whenever I try to access the layers or also when I am in the animation program & try to insert transitions or moving text. It only happens whenever I try these two functions. I thought it was the program (psp 7). So, I installed psp 8. Same exact thing. Could it be some setting in my computer? It's driving me nuts!

Check your ram.....just 'cause you have two sticks of 512 (or whatever)
doesn't mean they are GOOD!.

Get a mem tester..........or pull some if you have more than one and substitute from another machine that you know works.

you might try 2 things, the amount of RAM or try a better video card, or reduce the resolution in the layers you're working on, the higher the resolution, the more memory it takes and of course slows it down and you can adjust the clipboard cache. The simplest is reduce your resolution

Besides RAM, the problem may relate to your operating system or just how long it's been since you rebooted. Win98 and Win98se will freeze like that sometimes when confronted with serious graphics (or audio) work. If you've been running a graphics program for more than 2 hours, it's a good idea to reboot (voluntarily; it doesn't take any more time than starting up after a freeze, and you don't lose the editing you've done).

I just got a new computer, installed PSP7 & 8. The same problems are happening that I listed above. What could it be???

Check your ram and like that other person said rebooting is good for the pc. Also good is Defraging. Make sure your pc is not full of spyware or trojans and try and clean out your pc with something like window washer. this clears the cache temp files and other things too.
Make sure you are not using programs that are deemed bloatware too.
Right now I am running on 256 mb ram and photoshop does ok. On 128 it was terrible:(