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Thanks jjjnettie and Lester. Actually I first tried running DSS under WINE on my Linux machine. It appeared to run ok but exhibited this problem. So then I installed windows xp under Virtualbox and tried it there with the same result. I then tried the beta version of DSS (3.3.3) with the same result. I've even tried running it on my Mac under Virtualbox and guess what?... same result. So my conclusion is that it's something I've set up incorrectly.
I'll try the drag and drop from DPP into DSS to see if that makes any difference.
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