Hello Everyone: I just bought a new Hi-MD and had the same problem for an hour. I could not transfer files from Sonic Stage 3.4 to a Hi-MD. My problem was easily solved because I realised I had MusicMatch open at the same time as Sonic Stage. As soon as I closed MusicMatch the file tranfer and conversion worked perfectly. This leads me to believe that the cause of the SonicStage file transfer and conversion problem has to do with a conflict between SonicStage and some other program running on your computer (this program maybe running in the background) trying to use the same codec....Maybe try uninstalling some media player programs and seeing if that helps...just my 2 cents... tx,