OK, this is interesting. Whatever that is causing this issue seems to be Lagarith Lossless Codec.
A fresh install and registration of Videopad works ok.
Issue starts to relapse when i reinstalled Lagarith Lossless Codec for avi export.
Folks, is there a way for me to export as a lossless avi for handbrake?
(to make it 5g IPod compatible - for IPhone/IPad compatibility for safari browsers, don't ask, pain in the rear.)
The current Videopad setup doesn't allow me to do lossless export and kept prompting file is not suitable for that.