C3D 2010 crashes when trying to start a new drawing

everytime, via button of file menu. AutoCAD just freezes. However when starting up AutoCAD, it starts like normal in a new drawing.

And when did this first occur?

From the new installation of 2010

Does the computer meet the system requirements as recommended by AutoCAD?

Did you experience any problems during the installation of 2010?

Did you download and install Update 1 for 2010?

I don't think it's hardware related. I#m using 2 x Quad Core 2.66GHz Xeons, 8GB RAM Quadro FX3700, 64 bit OS. It is the 64bit version of C3D that has apparently been installed on this computer, with SP1 & 2.

Did you try the Repair option?

I will try that when IT guy is back in. Also SCALELIST edit doesn't work, via command line of viewport scale dropdown. the command simply doesn't do anything - it just freezes AutoCAD until I hit escape. I recently discovered that the File\New issue freezes CAD only until I hit escape - but again the command doesn't do anything.

The solution:

http://usa.autodesk.com/adsk/servlet/ps/dl/item?siteID=123112&id=13288548&linkID=9240697