There is no Need to return it. The Fuze is a spectacular player, if you are willing to do a little work, to make the Fuze work for you. SMC is a very tricky program, but there are thousands of work arounds and suggestions for adding video to the Fuze. It is jus a matter of looking around and trying a few things and finding what works best for you. I for example have no problems with SMC, on the condition that I use mpeg, or avi files for the video I want to add. Thats what works for me, what works for you may be very different. So the best thing you can do is play around a little bit.
Download the free Rhapsody Player/Converter and use it instead of the Sansa Media Converter. You don’t need to join Rhapsody to use or download the Rhapsody App. Start up Rhapsody and plug your Sansa Fuse (the Fuze can be plugged in before you bring up Rhapsody App also). Just cancel the pop up page and you’ll see the Fuze being loaded by looking at the bottom of the application screen. It may take a few minutes, so be patient. Now click on the video portion of the internal or external Fuze drive. Drag and drop your video in the application and you will see it start converting at the bottom of the screen. When it finishes the title will appear on the screen. It take about 20 minutes to convert a half hour video. You can drag and drop as many videos as you want but it won’t show anything till it finishes the conversion.