We have had a report of the "Failed to play back MIDI via sequencer" error that has occurred due to the system running out of memory on Vista and later. It would appear that this is caused by a memory leak in the Microsoft process audiodg.exe. Information and a hotfix can be found here:
http://support.microsoft.com/kb/981013/en-us
http://support.microsoft.com/kb/981013/en-us
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