It would seem you guys are correct. The version I was running WAS pirated. Apparently, my best friend's concept of free is different than what it should be. I have downloaded and am now running the REAL free Gamestudio.
I really want to become an active member in this community, and I truly am interested in learning to create games, and as such I do not want my first impression to be that I am a pirate. So I apologize for wasting a thread on this, and thank you Rei for giving the hint to even ask my friend if the program was pirated.