The developers have just released a new update. It should fix this issue.
Please install the update by going to Start | Help | Check for Updates, and follow the instructions. Please Note, this is the Start button within the program, not Windows Start button.
If you still get the problem then a file called Snapu.dll may be corrupt on the computer. A snapu.zip file that can be downloaded from this link here:
Avanquest Media Patch file Snapu.zip
If you download and unzip it you will see snapu.dll file. This file then needs to be copied to:
C:\Program Files(x86)\Avanquest\VHS 2 DVD Converter
Allow it to overwrite the current file.