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Thanks for the response vision, I actually reported the prob and he said to try this:
1. Close Scratch LIVE, if open.
2. Open your My Music folder.
3. Inside the My Music folder you'll find a Scratch LIVE folder, open it and delete the DatabaseV2 file.
4. Restart Scratch LIVE.
And i'll be damned, it worked!
Just wanted to put it up here incase anyone else ran into the same prob when upgrading.
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