For the benefit of anyone reading this, after much searching I did eventually find the solution. It does seen to be a problem caused by Nero (anyone who wants a more technical discussion might like to look at my thread here[^], which was mostly over my head). I finally found the solution here[^], which was to rename c:\Program Files\Common Files\Ahead\DSFilter\NeVideo.ax to something else. This fixed it immediately, didn't even need a reboot. I don;t know whether this classes as a "bug" or a "feature" in Nero 6, or whether it has been fixed in later versions. By all accounts it only affects programs when they are being debugged, so shouldn't be a problem for the released version. Hope this helps someone else.
Dave