Obvious question...Have you applied Update Rollup 1?
8.8 when on ok after i applied said update.
Be warned 8.8 doesn't play well with Windows 2000. There's an issue i experienced where the event log was completely flooded with the event below.
A system event 516 is logged source mfehidk;
“Process **\VSTSKMGR.EXE pid (3832) contains signed but untrusted code, but was allowed to perform a privileged operation with a McAfee driver.”
I gave up trying to fix it and rolled back to 8.7 and the problem went away.
Thanks Triston, I was not confident about VSE 88 on Win 2000 box. Good know that you find VSE 87 working fine. Does VSE 87 require Rollup 1 for Win 2000.