MF4 hang - can't create DVD or image

[drjjr]

I just upgraded to MF4 and can't get it to create my first project.
I have 2 captured AVI files that I joined together, marked chapters, created a menu and saved the project. The total won't fit on a DVD, so I select the shrink option and click Burn. It takes about 10 minutes to get to 90% on "converting video title." Then it stops and the CPU usage goes up dramatically. At about 18 minutes CPU usage drops and I get "Ulead DVD MovieFactory has encountered a problem and needs to close. We are sorry for the inconvenience." After I send (or don't send) the error report, MF4 restarts.
I am running and Intel 3.8GHz processor with 3.11GB of RAM, Windows XP.

Any ideas?

At the end of ~Burn.log I see:
=========================================================
Enter CuBuildContent::MenuMgrCallBack(1, 13, 1306568, 639f008)
=========================================================
Enter Normal_Pre_test_in_run_burn_action()
CheckAPRelativeLimit succeed
CheckSpecRestriction succeed
Menu space 3712
CheckMenuSpace Succeed
CheckHDSpace Success
CheckDiscSpace Succeed
Engine can't reuse playlist/vob/img and do pre-check action
CheckEditDiscArchiveImg Succeed
Engine CheckDevAdvance Succeed
Engine PreCheckMediaStatus Succeed
Engine finish CheckCache action
Engine CheckAnyConvert Succeed
Engine finish all pre-check action
Engine OnRunBtn_Base Succeed
Leave (Success case) Normal_Pre_test_in_run_burn_action
=========================================================
Engine start run OnDoBurnAction
=========================================================
title 0 : source file name: GUID:{305244E7-9A6F-4C3B-8969-456C63AD8355}
title 0 : converted file name:
=====Enter CuBurningTrdBase::CreateDVD()=====

[drjjr]

Not joining the two clips and not adding any chapters allowed me to burn the disc just fine.
It is interesting how much faster the video conversion occurs when they are two separate files. Ultimately I would expect it to take the same amount of time to process since it is still the same amount of data.