Well Jeepster you probably already fixed your problem by now. I just ran into the same problem, I ended up having to delete Sonic Stage by going to my computer, C drive, program files, Sony then delete Sonic Stage there. I noticed that had updated to 4.0 and my disc was only 3.0 so it would not reinstall Sonic Stage untill I deleted 4.0 and then update again... Hope this helps you or anyone else!!!!