The developers have just released a new update. It should fix this issue.

Please install the update by going to Start | Help | Check for Updates, and follow the instructions. Please Note, this is the Start button within the program, not Windows Start button.

If you still get the problem then a file called Snapu.dll may be corrupt on the computer. A file that can be downloaded from this link here:

Avanquest Media Patch file

If you download and unzip it you will see snapu.dll file. This file then needs to be copied to:

C:\Program Files(x86)\Avanquest\VHS 2 DVD Converter

Allow it to overwrite the current file.