Sorry, but even the Picasa/Hello support team seem to be having trouble with this one. I've uninstalled Hello, restarted the computer, opened Picasa as told, downloaded a new version of Hello, only to get the same message. We're still working on it!
Meanwhile, I took a class last Saturday from Rayna Gillman (from our Artful Quilter's web-ring) - printmaking on fabric in different ways. It's got me all inspired & I have even MORE photos to share! Some of the samples I made yesterday in class, some of the over-dying with water-soluable CrayPas on some old stuff I had previously printed. Having A GREAT time! Will show & tell ASAP - with the help of Picasa/Hello support teams, no doubt!