I know this post is old but I think it is worth some comment.
I use Studio 12 Ultimate and it is fantastic. I do not have a super computer and it runs fine. There are several rules you do not break.
You must have at least two hard drives. One for the program on operating system, the other for video editing.
Rule number two, turn everything off that runs in the back ground like virus checker, spy checker etc etc etc. Try running "End it all". It works on my machine and touch wood, I have not had a crash or glitch.
Use Studio 12 - get rid of all other versions from your computer. Before you install studio 12, if you have any other version, delete it and run "regdelete" from Pinnacle. It will remove all registry entries from Studio, thus ensuring a clean install.
Studio 12 has a lot of features that the older versions do not, including shutting itself off after making movies, or saving itself if you run out of disk space.
You have learnt a very hard lesson my friend. There is always a GOLDEN RULE that should NEVER be broken. BACK UP YOUR FILES !!!!!!
Most people (me included) have (had) a lousy file system. The project is usually in one file, the music in another, video in another etc etc. This makes it hard to back up. Videomaker.com helped me organise my files and best of all made it easy to back up everything in my project.
Read how to do it here: http://www.videomaker.com/article/14242/
Oh and by the way cjvideo, if audio is not important on your third video timeline, you can drop video into the "Title line", but make sure you put it where you want it as it is difficult to move around.
If you have trouble seeing what's on the first two time lines try this little trick. (Assuming you have video in both video timelines.)
Now this step is important, it will not work if you do not do this. Lock the second time line (overlay track) . The video will appear in the preview screen.
Now Click on the first video layer, now open your "video plug in tool box" located just above the video time line on the left hand side of the screen and select the "picture in picture" icon. You can now see the first video layer in the "picture in picture" view screen, and the overlay video track in the preview screen. press the play button or drag the scrubber and both video will play at the same time. You may want to mute an audio line as both audio will play too. (yuck)
If you really want some helpful hints and tricks and free HFX transitions (home made) and other free plug ins visit this site
http://www.declic-video-fx.com/language/en-US/Home.aspx