does not function with IE8.

The topic says it all.

Hi John.
Are you using IE x64?
If yes - VE doesn’t support IE x64 for now. Try IE x32 on your Vista x64 PC.
Kind regards,

No, the 32-bit version.
Sorry, very few plugins are x64, hence the reason I use the x32 version of IE.
VE does not work with IE8, period.