Karl, your problem certain
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Karl, your problem certainly sounds like my problem. I have the same graphics mode set as you although I am running with a 1Gb GDDR5 Radeon HD 6490M Graphics card. Of interest, Avid comes with a little program called “Nemo Check” that it loads with the program in the “Start/All Programs/Avid Studio/Tools menu. That program indicates I should have no problem with HD. Very frustrating.
Composite 1 has suggested I contact Avid directly about the conflict, which is what I was getting ready to do. I am able to run Avid Studio with patch 1.1 on another machine without a problem abet somewhat slowly on the render but I wanted to port the program to my Laptop i7 with 8Gb memory for working in the fileld. With what I am running the program should handle the memory and my CPU should not crash. I am running Win 7 64 bit Premium Home Edition and receive that same Net.Framework 2.0 KB 981266 message on install. I have also received the system low on memory message just prior to crashing.