So my Sonic Stage started working again suddenly yesterday. Not sure why but here are the things that I did:
Created new shortcut on desktop.
Checked Run as administrator.
Clicked run in XP Compatibility mode.
When it didn't run - SS tried to go online to fix
I canceled the fix
. Went back in and unchecked the XP Compatibiltiy, kept Run as Administrator checked though.
Opened program and it worked.
I haven't had the nerve to shut it down and try to open the program again though...
Hope this helps someone else...