I have the same problem - everything but the "on screen image" works fine.
Running Office 2007 and Vista (Business and Ultimate on 2 different
computers). The problem occurs on a Dell notebook as well as a desktop. The
hardware and software has been updated to the most current levels, with the
exception of Vista SP1.
I would really like to use this feature in a teaching environment, so if
anyone has suggestions, it would be great to receive them.