Autoadjust feature malfunctioning and .jxr problem

Hi all

Windows Live Photogallery's autoadjust feature is malfunctioning.

Every time I click 'autoadjust', the top left hand corner of the photo is the only part of the image that remains intact.

I've attached a sample of a photo (before and after) - hope you find the image amusing! (the problem, however is not amusing!).

I also have the .jxr prompt repeatedly showing up, despite having windows photo gallery set as the default for all images. I looked at some of the solutions offered under that thread and they all seem rather complex to execute....mentioning it here in the hopes that a simple solution is offered and/or it is part of the same problem.

Your assistance would be greatly appreciated.....thanks so much!!