Have you remembered to run the MedConfig tool?
As for your user-startup file, if the only thing that's been added is an "Assign Picasso96:" line, you shouldn't worry about it since it only tells where Picasso96 can find it's files.
If a "Mixer NOGUI QUIET" line has been added, I will suggest that you disable it. The Mixer has always been a problem on my setup, and the only way I can get it to work without crashing, is to use a delay before it gets started. This is done by running it in my user-startup-LATE script that gets executed from the regular user-startup. The user-startup-LATE file has a "Wait 10" at the top.