Just troubleshot myself through this, thought I'd post this just in case
anyone else had had a similar problem. Both Zmud and the LicCtrl Service can
have conflicts with the Data Execution Prevention (DEP) feature that is
included with sp2 of Windows XP and Windows Server 2003. DEP and it's settings
can be seen, at least in XP Pro, in: control panel > system > advanced >
performance > settings > data execution prevention. DEP is by default only
enabled for certain core programs and services, however some technical and
gaming sites are starting to advise people to to turn it on for everything
except a whitelisted group of programs. If a user turns DEP on for all
programs, it will cause two problems with regards to Zmud and possibly other
zuggsoft programs. First, if Zmud is not on DEP's whitelist, it will
immediately crash, giving two memory errors. Secondly, if the LicCtrl Service
is not on the whitelist, DEP will prevent it from running, making it
impossible for zmud to operate. In this case it gives the hourglass-then-nothin
g bug described in the elicence FAQ. To get the LicCtrl Service working again,
add the c:\windows\runservice.exe executable to the DEP whitelist. With both
of these on the list, Zmud will run properly again. Or you can just not have
DEP screen every executable. Whichever floats your boat.