I haven’t got any issues with Z3 since I upgraded to vista, but when you open ZB, and it sits there with the zb logo on, it’s showing the splash screen (which you should NEVER disable) until it’s done and go into the welcome screen. Don’t switch to other program after you launch zb until it goes into the welcome screen. If you do, ZB will just sit there on the splash screen. Clicking on it will tell zb to close the screen (and ending the software run). Instead, if you find yourself stuck on the splash screen, just alt+tab to zb or click on it on the taskbar. Not the screen itself.
Also, like sirquadalot, I can achieve the six subdiv and 3HD subdivision of the dog in Vista 32 bit. Granted, I had to increase maxpolypermesh to about 12 to let it go up to 8mil polys. (usually I leave it at 2 for speed’s sake) Does anyone know the formula for maxpolypermem on Z3? It used to be available ram x2 on Z2. (like, 2 gig ram x 2 = 4 maxpoly permesh) It doesn’t seem to be the case anymore on Z3. If anyone know, please give a shoutout. Thank you. 
Maybe your RAM is incompatible to your hardware? You also might want to reinstall Z3 instead to try and fix that zdata thing. Try reinstalling to a different folder than the default one since vista sometimes make files on the folder invisible to you while it sits there and sometimes annoys the hell out of your software.
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On the subject of the dog… If this were a monty python forum, I’m compelled to post a gratuitus picture of the dog’s “woo-hoo” just to annoy the censors.
(hey, even IKEA did it in this year’s catalog)