BCC8 / Vegas 10 Pro / 3d Image Shatter not shattering

I have added a PNG to the timeline - 5 seconds - and then added a BBC 3d image shatter effect to it. The image is 5 seconds long, PNG, with alpha. The image shatter was dropped on, and no parameters changes.

Idea is to have PNG shatter to reveal video track underneath.

The image does not shatter - if just flashes a couple of times to reveal the video on the track underneath.

I have tried a couple of the other effects in BCC8, and not too impressed with the reliability - Vegas 10 stopped a couple of times and in general had issues with transitions not transitioning properly - always stuttered and never transitioned smoothly.

BCC 7 in same environment works fine for every effect.

Vegas pro 10d build 669 , Borix BCC8, OFX, 32 Bit - just downloaded today to ensure latest version
Win XP SP3 4GB Ram

Video media DV, PAL

What information do you need to help diagnose issues?

Thanks,