I applied this patch and everything is working fine now. Encore even retrieves the system info!
http://kb.roxio.com/search.aspx?URL=/content/kb/General%20Information/000070GN&PARAMS
Not sure why Encore is working now. This patch is to the Roxio PX engine and I have no Roxio software installed.
Previous posters have stated this is a 32-bit fix but I am running Windows 7 64-bit and it appears to have fixed the lockup problem.