tried that…just the same problem…
Are you using eyefinity ?
The video show three screens, and I can see that you are moving the Cubase window between them. I can’t make out anything else.
A step-by-step repro would be enormously helpful. Have a look at the stickies in the Issues Reports subforum. Helge posted a how-to at Steinberg Forums
There’s no point in arguing. People are suggesting that you troubleshoot using tried and true methods that many have taken the time to figure out, and you don’t have to be a computer geek to do these types of things, but one does have to take the time, and maybe a bit of struggling along the way to do it.
The bright side is, once you get a handle on how to troubleshoot, you can apply it to future issues.
Here’s what I would try.
Show installed updates in your windows programs and features page and uninstall the .1 update…this will roll you back to 8.5.0
now try to create new project.
if it does the same probably this suggests a file has been corrupted by the update and you should uninstall 8.5 and then reinstall 8.5 and the update.
If 8.5 creates new project ok just try to run the update again
Always worth right clicking and running installers as administrator.
whats eyefinity and where would it be, or how would i know? 
and why would it effect one version and not the other… 
best, Kevin
steve, when I touch the project window it just becomes very long and thin on it’s own…I don’t make it do that.then it goes black, I move the project window to show how long it made itself…
and can I get an answer as to why my drivers/hardware/system is at fault for one version but not at fault for another version this is my main struggling point…is there something new in the version 8.5.1 that renders my system useless?
I’ll give this a go now…thanks
How do you organise your workspace. ie how do you organise the windows on your monitors
I work with three monitors and because I am a bit of a cheapskate they are slightly different sizes, so I lock the Arrange Page to the left Plugins and editing on the middle and for the slightly longer monitor the Mixer. I have a number of different setups I have saved that I can immediately go to. This is important as you are not constantly trying to resize stuff to fit. This is all in Workspaces in the toolbar.
Are you using the latest Radeon drivers? I had some issues with an older driver.
Do the shortcuts work - in this case Ctrl N?
Are you moving from a project you are working on to a new project or from booting up the computer.
Do you get as far as the project assistant?
Are you trying to load a template?
eyefinity basically combines all 3 screens, and makes the computer see them as one big screen. It’s part of the AMD driver.
WOW…that was it!!!..you are a God!!! I just uninstalled the update, downloaded it again and re installed the update and I can open as many new projects as I want…fantastic, thank you so much Grim. 
that’s the third time I’ve had a problem that was not the fault of my system…
thanks to all and if I was ratty with anyone I apologies profusely…this had me pulling my hair out…
well, I’m off to make a new project…cheers, Kevin
Excellent!
You could consider editing the title of the thread by adding (solved) - might be helpful for others.
Steve.
must’ve been doing it as you wrote this…
Actually now that I think about when I got my present computer this time last year I had a lot of trouble setting up for three monitors. Eyefinity was a nightmare. I got rid of it straight away.
When there are issues you have to remember that they are all solvable and that you have to develop systems/methods of finding possible causes. From bitter experience I know that ruling out a possibility can cause a lot of extra work if it does indeed turn out to be the culprit.
Anyway glad that it is sorted.
from my recent experience it’s become clear that digging into my system is not the first thing to do…
quite prepared to do it if need be but all the signs were pointing to Cubase…or in this case, the download which may or may not be Steiny’s fault…got corrupted somehow but who knows…the first time a download has been corrupted for me…
never used infinity either so happy about that
best to you Kevin
Is this something that comes built-in with brand name PC’s?
I had my PC built by a person who knows PC’s specifically for the demands of DAW’s. I’m probably naive, but assuming your mother board has 2 video outputs, can’t you simply add an additional video card with 2 additional outputs for a total of 4 outputs and be in virtual heaven once you link the mix consoles? This is what I did with no issues.
I had my machine built professionally by a firm who has built my last two computers. We looked th the specs of a number of graphic cards and decided to go with the AMD Radeon HD 7700. Which seems to be very good. However I made a mistake in turning on gaming mode - don’t ask me how or why - it was instant regret + eyefinity. (I mean who hasn’t done something stupid in this game?) Which of course is great for gamers. However it was switched off immediately. I still haven’t worked out how to switch off the annoying messages. You could add another video card, but because I have 3 UAD cards there were no PCIe slots left. Hence the need for a card with 3/4 outputs.
The only issue I have had is that it does not seem to like changing from Cubase or Media player to opening a memory stick. Screen goes black and then you get the memory stick window.
That explains a lot. Thanks. I try to stay clear of anything foul including always being off-line, but wasn’t sure about what Eyefinity even was.