I ran into this problem last year: Photoimpact wouldn't open. Instead I got an error message saying "Xerces Panic Error - could not load a transcoding device." This has affected some Dreamweaver and Adobe users, too.
I found this solution on another forum, and thought I would share it here.
Apparently, the problem is a corrupted/changed registry key:
HKEY_CLASSES_ROOT/MIME/Database/Charset
I went to my laptop (running the same OS, Win98SE), exported the registry key to a floppy, then imported it into my desktop's registry. Photoimpact opened fine.
One member said he simply deleted the key, and although the error message still appeared, his program loaded and ran. I wouldn't try that without backing up the registry first.
Hope this helps,
JT
