Brian ok this is weird.
When both WD and the webcam software start, they do no have the arrows to minimize to tray. I have to click on the graphs in WD to minimize and then tell the webcam program to hide. Some time later, I will look at the camera and/or WD. At this time, the minimize arrows appear. Once I mimimize using the arrows, Vista goes to Basic. If I kill the webcam capture, then Aero is restored.
Not sure what that means, but that is what it does.