Welcome to the forums,
Hopefully you received a good copy, and not one that's been messed with, or a TBYB (Try Before You Buy), or SE (Simple or Special Edition). It does happen where people will hack older versions, or sell the free versions, "anything to make a buck". Of course if it's a trial version you get the 30 day warning when you start it, with the SE versions click on the

located in the Menu bar, and select About VideoStudio, and look at the Version number. If it has SE at the end then it is a watered down "freebie" that hardware manufacturers include with their product.
If it is any of the above, you will not be able to install the updates, or patches, that can be downloaded from
HERE.
Have you installed any so called "Codec Packs" ? These generally contain numerous codecs thrown together by people that really have no clue. The codecs will be outdated, and conflict with each other, not to mention any that you already have installed. If so I would recommend uninstalling the codec pack and retrying VS. You may need to uninstall/reinstall VS.