Like you I'm a novice at doing a 'Live Show' so it may help to try something simple to see if we get the same outcome then build from there. (Forgive me for teaching you to suck eggs.) If you're up for it then:
First go to 'My Pictures' and add a new folder 'PSP Live Show'.
Now run PSP, open a 'New Show', in the 'Folder List' select a folder containing images (any images), drag a different image to each of the first few slides.
Select the first slide and open the 'Slide Options' dialog. In the 'Layer Settings' tab under 'Layer Type,' ensure 'Replaceable layer' and 'Load live image' are ticked.
Click 'Configure Folder' and under 'Folders to pull live images from' browse to and select the folder '*:\Pictures\PSP Live Show' for both 'Preview' and 'Executable'. Under 'Playback settings' select your preferred order. OK out (but not out of 'Slide Options').
Right click on 'Layer 1' and select 'Copy > Copy Settings' and with 'Source Layer, Slide 1, Layer 1' selected, under 'Settings to Copy, General' tick 'Replaceable image' and 'Live image'. In ' Destination Layers' tick each of the other slides. Then click 'Copy & Close'. Then OK out of 'Slide Options'.
Press the Spacebar to play the slides and the Preview window should be blank. (This is because you chose '*:\Pictures\PSP Live Show' as the 'Preview' folder above and the folder is empty.)
Now switch to 'Publish' mode, select 'Executable' and click 'Create'.
Under the 'Menu' select 'No Menu'. Under 'Options' 'Loop Show' should be ticked. Click 'Create', name the exe file and click 'Save'.
When asked, choose 'Yes' to watch the file. The show will of course be blank (because you chose '*:\Pictures\PSP Live Show' for the 'Executable' and the folder is empty).
Leave the show running, switch to Windows Explorer and copy any image into '*:\Pictures\PSP Live Show'
That image should shortly be displayed in your show. Add other images to the folder and these will appear.
You now have a 'Live Show'. It works for me. Does it work for you?
If it does you now build on it. You can have multiple layers per slide and apply Styles to them and it works. Just remember what it says on http://kb.photodex.com/2154/how-to-make ... -producer/
'All you need to do is choose your style, then pick which layers in that slide will be live images. It’s often easiest to pick just those images which actually appear in the style. Be aware that some styles will use duplicates of the same image. If you make all versions into live images, you might get different live images on each of the layers.'
I'm able to have multiple layers with styles and as I add images to the folder they appear when the show loops.