Nero vision express 2 Video preview no picture

I'm new to vision express 2 and was experimenting to use it to add menu's.
For my experiment I just picked a file out of a video_ts folder which was added to V.E no problem. I created a menu from the seletions available and the menu button had a still image from the video file.
But when I previewed and the little remote control appears the preview pane stayed blank and I could hear the audio from the clip. I remember the same problem some months ago when I gave up transcoding an avi from my camcorder. It seems to me like nero needs a codec or two but the program tells me the MPEG2/DVD codec is found when I make my "create DVD-R video" selection at the start of the process.
Any ideas?? If its a codec prob where should I download from?
P.S.
I have no problems playing dvd on other software if that helps.