Hi GregII,
The problem you're describing reminds me very much of a corrupted download file problem. I would try the following:
1) Write to Stardock Support and ask them to verify the download link they gave you to make sure it isn't the problem. Ask them to test the download link to validate it does in fact work correctly with a test machine.
2) Remove the Stars dream file from your PC completely. Make sure it isn't hiding anywhere. Then run a good cleaner program and reboot.
3) When Support says they have verified the link and that it works correctly re-download the Stars Dream file. If you experience the same problem it might be due to a codec issue. CarGuy is very knowledgeable with Codecs. You could try sending him a pm to troubleshoot that end if needed.
Good luck. I hope you find a solution.