Deskscapes cant play video dream

i recently have upgraded my deskscapes 1.2 to the new 2.5.067, it now works with the fences software demo beta, however i can no longer play most of my dreams.  It now says that "could not play video dream" The dream may contain an invalid video type or a valid mpeg2 decoder may not be present on system.

Thing is everything was working great in 1.2. I have newest nvidia drivers for my grphics card and system is working great.

Windows Vista Ultimate x32 SP1, 4gb ddr2, Nvidia 8800 GTS 3...