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Pinnacle has very serious memory problems creating hangups. Unless you have Windows VISTA or higher which will allow you to upgrade your memory to 4GB it won’t work well even if you adjust your virtual memory.
Two GB is far too small for most movies that are longer than about 5 minutes, for most movies containing AVI files, and for most with more than a few songs in it.
Pinnacle also has a lot of problems with DEP errors which result from many AVI files.
If you have less than 4GB RAM, the only solution to the hangups is to break your Pinnacle movies up into very small segments that are smaller than 5 minutes each (about 25 pictures or less if you are using any AVI files).
You will indeed be driven nearly insane otherwise.