I am the person with the Kid Pix problem, here is what they say in their support section, although it is in the Windows section, I am assuming it is the same on OSX too (since this problem happened right after I installed 7.1.3):
When attempting to add a sticker or animation to a project in Kid Pix Deluxe 4, the handles for the object show in the workspace, but the sticker or animation does not appear. Updating to Apple® Quicktime 7.1.3 can cause this behavior. Uninstalling version Quicktime® 7.1.3 and reinstalling Quicktime® 6.5 will resolve this behavior.
I had 7.1.2 before and it used to work.
I am also the one with the reinstall problem. I ran the disk permissions as you said but I still get the same message when I try to run the 7.0.1 reinstaller (does not contain an appropriate version of QT) Does this reinstaller require 7.0.3?
Thanks for your help