Vista Home Premium 64-bit SP1 and DS 2.0: DWM Is not running error

Just installed DS 2.0 on my 64-bit Vista Home Premium SP1 machine. This machine never had any previous version of DS installed before.

Every time I try to select a Dream file it says that "The Desktop Window Manager is not running". However, it IS running. I can see the tak in task manager and the service is shown as running in the services control panel.

I tried rebooting multiple times, and reinstalling. No help. Anything I can do, or is there some known compatibility with 64-bit Vista?

Info from the 'about' below:

Windows Vista 64-Bit
DreamControl.dll   5/5/2008 21:30:36 PM       v2.00 (#106)
DesktopControlPanel.dll  5/5/2008 19:14:28 PM       v2.00 (#106)
WallpaperPage.dll   5/5/2008 19:14:28 PM       v2.00 (#106)
DreamTasks.exe   5/5/2008 19:14:28 PM       v2.00 (#106)
DreamSwitcher.exe   5/5/2008 19:14:28 PM       v2.00 (#106)
DreamThumbnails.dll  3/18/2008 20:50:26 PM       v2.00 (#106)
DeskScape.dll   5/5/2008 19:14:28 PM      
DeskScapes.dll   9/5/2007 20:04:58 PM      
Activate.exe   4/24/2008 19:01:36 PM       v1.04 (#8)
d3dx9_30.dll   8/8/2007 22:26:18 PM      
d3dx9_32.dll   8/8/2007 22:26:18 PM      

Jason