I must be doing something wrong. Xfire created a series of .avi files (which I could view on my computer), but Corel Video Studio 10 did not like them, and when I uploaded a single, unedited .avi file directly from xfire to YouTube, YouTube also "failed to convert file".
I tried converting the .avi files to .mov but this did not solve the problem.
I do not see how to change xfire so that it would create a .mov (or other format).
when I did a fresh reinstall I just put on windows media player 11 and VLC (both free) and fraps and xfire
I can play DVDs and CDs
I can record fraps files
I can watch uncompressed fraps files I can import fraps into sony vegas and edit and render
so I suggest uninstalling k-lite and anything else then putting on windows media player 11 and VLC
The issue is resolved. All is ok AFTER I installed K-lite codecs, some DirectX package from Microsoft, and rebooted. Unfortunately, I cannot say which lead to the fix -- the new codecs or the directX (probably the later).