It finally works! I chose "Option 2" from your previous post. It still asked me to insert the CD but then I rebuild the libraries and now it works! I'm so happy!
A billion thank yous to you Steve and all the others who offered help. This is great!
Ok, so now may I officially and knowingly say that there IS a bug in the installer? At least, in the ESD version I bought. I mean, WHY weren't the sds files copied in the proper directory during the VS install? Surely, neither Corel or SmartSound can expect us to copy these files manually. Or was I just unlucky and supplied with a faulty installer, twice in a row (I had the EXACT same problem with VS11+ under Windows XP)?
Regardless, perhaps this thread should get a sticky so if anyone comes across this problem in the future, they'll have a detailed answer and explanation here. Just my two cents.
Thanks again everyone! Now I'm off to enjoy some editing!
