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I've searched the "Remote Buddy Forum" and found a thread with 
similar (same?) issue I have had, but can't reply to it because I 
just signed up. The reason for the "reply" is because there was no 
solution in that thread.
Hardware setup:
* I have a Mac mini (1.25 GHz PowerPC G4 with no built-in IR). 
* I have the Keyspan Express Remote 
* Receiver: UIA-11F (says on bottom) 
* Remote: URM-17A 
* http://www.keyspan.com/products/usb/urm17a/homepage.spml
Problem:
I run Remote Buddy and first thing is the Buy/Try dialog, of which I 
click the "Try" button. Then, after a second or two, it shows "Hotkey 
Remote activated" in a semi-transparent rounded box just above the 
Dock. This is followed by a white box covering up almost half of the 
screen (on my 800x600 setup) centered horizontally and vertically and 
sits on-top of any new windows. Nothing else happens. The icon that 
is supposed to appear in the top menu never appears, and I have to 
open Activity Monitor in order to quit it (yes, it says "Not 
Responding" next to Remote Buddy).
Solution:
After much trial an error the thing that finally worked was:
1. Launch the KeyspanDMR application.
2. Unplug the remote receiver.
3. In the top menu-bar, select Settings, and then Un-install. Despite 
what it says about deleting preferences, it did not actually do this 
in my setup. But, just in case, you can make a backup/archive of your 
customized maps (stored in ~/Library/Preferences/Keyspan DMR 
Preferences).
4. After the uninstall, you can run Remote Buddy and it should work.
The idea here is you are going to stop using the Keyspan software 
(drivers/kernel extensions, etc.) and start using Remote Buddy. I had 
some pretty nice custom maps in the Keyspan setup, but the ability to 
use multiple remotes AND the much better interface makes using Remote 
Buddy the obvious choice. I actually started looking for Front Row- 
ish software first, but they all rely on QuickTime, making them 
useless for reliable playback which VLC has already mastered.
Best, 
Anthony