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Okay let's try some standard things.
1) Rename the AVI folder to AVI_back
2) Set the color depth to 16BIT
3) Turn off everything in the background like E-mail/ICQ/Messenger, Virus protection and everything in the system tray beside the clock.
4) Update your Windows, update your Video card drivers and audio card drivers. Then repeat steps 1-3.
 
Please run a DirectX Diagnostic:
Start menu –Run - then type Dxdiag, then select each tab across the top of the window, and run the tests on each tab. Then select “Save All Information” button in the lower right of the window. This will bring up a dialog box to allow you to select a name for the file where the information will be saved. You can save it right on the desktop as this will make it easy to find. Then copy the contents of that file from the start to the heading that says “DirectX components” then paste what you have copied into a post in this thread.
 
Your video card driver is way out of date please update.
 
Okay you are giving me the part I don't need, it is the part up to that point I need.
 
Okay, I want you to try everything from post #2 again, for instance I see you are set at 32 Bit color instead of 16.

Also try renaming the Music folder to Music_old

Also I need to know what the error is saying to you?
 
Okay, so now you can play but you have no music.

It could be something you are runnning in the background that is occupying all of the sound card.

If not then you can try lowering the sound card acceleration, you can do that from the Dxdiag program. Restore the original name to the music folder and try each setting.
Or just play music in another program.