Unable to edit bitmaps/photos from within CorelDrawX5

I have recently upgraded from X4 to X5 and while when I first installed it I was able to click on a bitmap and get CorelPhotoPaint to launch - it now says Failure to launch server application.  I have tried the F8 tip while opening both Paint & Draw, repairing the installation (from both the hard drive and the disk), and removing and reinstalling.  I used to have X4 and even X3 on my system but have removed both of those versions.  And yes, I have associated the files although within Corel the ticked boxes do not seem to stay put.  I am at the end of my tether - any tips?