With all your suggestions something in here has to work. I have read through your answers several times and at some point hope to find the combination that works. So I guess I need to reward points and continue to keep trying to solve this mystery. In order for me to ask another question I have to address this one. TechSmith has been all but useless in their support which supposedly I paid for. I still have the same problem with the Camtasia.

NoCodecAvailable.png FileTypsCamtasiaStudioWorksWith.png I get the same consistent error seen above. I then went and tried again to do a simple import media into Camtasia Studio 7. None of which worked to resolve the problem on any of the machines or any of the newly 'fresh installs of Camtasia Studio 7. I have downloaded and installed the tools from codec guide When I open the mpg files I can view them in the WinTV7 app and in WINDOWS MEDIA PLAYER AND VLC MEDIA PLAYER with no problems. (also latest version)It is a tool that allows you to record from a TV card. mpg file format within the Hauppauge WinTV7. It is supposed to work with mpg and many others see images below. It is currently working with other formats.

Camtasia is one of the best editing tools out on the market for editing video next to say Adobe Elements. 2 are Windows 7 Ultimate and one a Windows Vista for Business ( all are up to date.) latest versions of all applications. I have Camtasia Studio 7 now installed on 3 separate machines.

Codec mp4 camtasia studio 8