It is a repeatable problem - happens on any video even fresh ones just downloaded from the camera. When I press the fullscreen icon on the bottom right of the video (just to the right of the audio slider), the following happens:
The video goes to full width
Video playback pauses
The video becomes greyed out - but still visible
A message is displayed: There was an error playing the video.
My system has no problem playing the videos from explorer, even full screen, using Windows Media Player.
Please keep improving Virb Edit.