Here is one fix and it worked for me. If you are using an NVIDIA card the driver software automatically installs NVIDIA 3d viewer software. This software conflicts with PE7. Just go into your add remove programs and find the NVIDIA 3d vision drivers and uninstall them. (ONLY THE 3D DRIVERS NOTHING ELSE!!!) Unless of course you are running a set of 3d glasses with your NVIDIA card in which case you can't have it both ways. I did it and now PE7 runs like a champ. Windows 7 really speeds it up too. Microsoft got it right this time.
Yea saw it. I didn’t have to remove the phys-x drivers though. Using a
geforce GTX 285 OCX
Also on my system when it happened was when I tried to pick ANY transition or effect. Once I removed the stereoscopic crap everything is jake. Didn't have to deal with the phys-x drivers at all.
Also BIG BIG KUDOS to whoever stumbled upon the solution for this. We all owe you a cold one.