I would recommend to all people having trouble with this app to try 2 things. First of all, I have tried both 1.0.1 and the new alpha. According to his web site, there seems to be a beta out, but i have emailed him and given my kudos. Hopefully he will release something further soon. I tried running a movie through it, and that worked at the beginning, and then stopped. I don't know what settings he is using, but a better way I found was to go into quicktime pro or a similar app that lets you export quicktime, and export your movie to "Multiple Images" or some such. Set the rate to somewhere around 1 frame per second, and then export it to a folder. Then AFTER that is done, point MacOSaic at that folder, assign a picture to do, and BAM it worked 100% for me. I have to say, I used about 2 hours of video convered that way, came out to a little over 7000 pictures. The program used about 3000 of them at the end, but it was stable and fast. I think what is failing is the quicktime component. Using something that is single purposed for that worked great.
Thank you for this wonderful program.