So I updated DirectX again and made sure my video card driver was up to date again. Still had the problem of unspecified error after that (last night).
So then last night I decided to try rendering the project at WMV 740 versus 1080 (I think it was 740). Anyway, it worked in MF 7SE, so I think the problem was the higher resolution rendering in combination with the higher HD mode I shot the video in with my Canon Vixia HFS20 camera. Problem solved. I think what I'll have to do is save money for a 4 quad core computer with beefed up video card and memory. I'm pushing my dual core to the limits with less than optimal video card I think. Helpful person at local camera store, Samy's, said problem has been cameras are ahead of computers in their development, takes consumers a while to catch up. I'm in that boat I think. She said my camera was made to do Blue Ray.
If it weren't for this forum I would have given up, thanks for suggestions which make me continue to solve it.