Raff_Uy:
Did you remove rename the WMV file? try to copy 1 wmv video files with problem on your desktop then open it on Studio check if you still got the same error. Blue exclamation mark on Studio means Studio is unable to find the location of the file you used on a project.
Here's an update...
I discovered I can open a wmv file if it is stored on my desktop. I can also open a wmv file if it's stored in c:\users\public\whatever. That includes Pinnacle's sample video. That also means it's NOT the codec problem I first suspected.
BUT I can't open a wmv file that's anywhere under c:\users\myusername. That's funny, because I can open all other formats there, just not a wmv.
I can navigate to those folders within Pinnacle, I can see the files in the directory, but I get an error when I try to open any wmv's there.
AND I noticed this: I navigate to c:\users\myusername\documents\whatever, but when I try to open a wmv file there, I get a message that referes to c:\users\myusername\my documents\whatever.
Bill Gates (in all his wisdom, bless his soul) changed "My Documents" to "Documents" in Vista and then changed it back to "My Documents" in Windows 7.
And here's an interesting quote from Wikipedia:
As of Windows 7, The "Documents", "Pictures", "Music" and "Videos" folder are displayed in Windows Explorer with a "My" prefix but are actually still stored in the file system without the prefix like in Windows Vista. (http://en.wikipedia.org/wiki/My_Documents)
Confused yet?
It appears that Pinnacle is using one pathing method to navigate to the files, and another pathing method to actually open them (at least with wmv files). That's why I can "see" them, but not open them.
Anybody else notice this strange behavior with Windows 7? Any thoughts on how to get around this mess?