This is not correct. How would GEMS know whether you were running CE 3.0.
It will not save as MPEG. Go into Format and change to PCM and then save. Unless of course you are running CE 3.0. I have the same situation using W2K.
Try installing the latest windows media player and report if that helps.
I got this error when I recorded audio for a db on 1-17-20 using W2000 and I can record and play it back but when I hit the ok button I get the error Failed to open acmStream and the audio says PCM... and the Save as says MPEG...
Do I need to change something or am I missing some files on my laptop ?