mrsgeorge--if you are trying to install on a windows8 (or 7), you probably have a 64bit processor and the software is not compatible. Brother already stated this fact. If you can get an older computer with WinXP and 32bit processor, it will install fine. Or win 7 or win8 with 32bit processor will allow installation. I am presently in that boat. I have Magic Box, Palette v1, PEDesign v2, PEDesign v4, and 2 of the PEDesign v5., and all are useless with Win8. My saving grace will be 3 old laptops with XP that I can use off line just for embroidery. You, too, can use an old XP laptop off line and enjoy your embroidery software. There is one other way.. If you have an operating system that will allow installing XP to run in virtual mode. Should you decide to go with the suggestion of a used computer, then it will be simpler to go to the Brother site and download the software program. It will be an updated version, saving you the trouble---and then all you have to do is install, plug in the cardwriter to verify, and you are ''in business''. You will like the program and do a lot with it, even tho it doesn't have all the features that came later. The later softwares are very expensive, and my v5 does all I want to do.

I should have offered help, if there is any way I can, by mailing me from 'my page'.

Here is the link to the version 2 D/L and the computer operating systems that are compatible

http://support.brother.com/g/b/downloadtop.aspx?c=us&lang=en&prod=hf_design4eus