Hi Stirling. I appreciate you looking into this for me. I am doing exactly as you say; select u disk, select file. Mine does it the other way round after this though. It gives you the run screen to set the speeds etc. When you ok the speeds it starts scanning the file (screen says checking file), that is when it counts up as percentage (takes ages for a 100mb file, 20minutes or so). Files above the memory threshold trigger the 'insufficient memory' display.
In order to look at the dsp program, I will need to hook it up to my pc, which will need to be running windows xp (more hassle). If nothing else works I will do this and see if there is a setting accessible from the pc to change the way it reads.
I have never found the view, copy, delete file option. It just gives me the choices you wrote above but once file is selected you get the chance to set speeds before it scans and spits the dummy out due to file size.
I can't help thinking the messed up cuts it made over the last couple of days are related to this issue. I am trying to eliminate potential sources of the problem. My last known good file (a small one) ran fine yesterday evening. So many blinkin' variables though.
Keep the advice coming. It's good to know that it should be possible.
As regards Mach 3. I will undoubtably convert it sooner or later. Sooner if I can't get this flipin' pendant working properly.