I just ran into the same problem - sometimes I would get a direct x E_OUTOFMEMORY error when medialab got to the inquisit portion and sometimes nothing would happen. For some reason though I got it to work by right clicking the medialab icon, going to properties, compatibility, and unchecking the "Run this program in compatibility mode for..." box (we had it enabled for Windows XP Service Pack 3). Not sure why but now the inquisit portion runs smoothly.