I had the same problem. You need to "optimize" your
computer for this sort of thing. Enabling DMA is correct,
but I also disabled virtual memory and it seemed to work.
Right-click on My Computer and select Properties. Under
the Performance tab, click Virtual Memory. Click "Let me
specify my own virtual memory settings" and check "disable
virtual memory". You will need to restart your computer
for the canges to take effect. Disabling virtual memory
will adversly affect the operation of Video Factory, so
only do it when you are printing to tape. Otherwise, you
should select "Let windows manage my virtual memory
settings".

Also under the Performance tab, click on File System and
make sure your hard drive read-ahead optimization is at
Full. Then, under the Performance tab, click on Graphics
and ensure that hardware acceleration is at Full.

If you still have problems, (and from my experience you
probably will) you may have a problem with other drivers or
third party codecs conflicting with the print to tape
function. Since it is almost impossible to delete these
things, try reformating your hard drive as a last resort.
You will lose everything on your computer unless you have
another hard drive to save stuff on, but at least you can
do a clean install. If this works, avoid putting anything
on your computer that is highly graphical in nature; games,
for example. These programs tend to interfere with things.

I have had no success with DirectX 8.0.

I am using Win98 SE. I tried Windows ME with no success.