No idea about the MediaImpression problem, it could be all manner of things. If you have a recent system backup you could try and restore it, failing that could you copy the files off the memory card directly and process them in an alternative program??
One thing might be worth trying first is to completely uninstall MediaImpresson, reboot and attempt a reinstall it from the disc.
There's a free MediaImpression 3 download here: http://ccm.net/download/download-14770-arcsoft-mediaimpression-free-edition which seems to have a valid download available. Download and install at your own risk as I haven't tried it myself; it's supposedly compatible with XP, Vista and Win7.
If program installations fail it could be evidence of having malware or corrupted system files on your PC, or a failing component/hardware issue.

Link doesn't work for me, just goes to the home page.

For the record the camera takes Compact flash cards and the Optio 33L, dating from 2003, was originally supplied with a 16Gb CF Card. (Putting any SD card in wouldn't be a good idea without a suitable adaptor!)

I presume you haven't got the original card supplied as that would be the best bet? Some things worked with one card and wouldn't with another! It could be your Ultra Sandisk is too new to be recognised by the camera or has simply gone bad, Can you read and write to it on a PC? if not it might suggest it has gone bad.
I suspect the format would have been FAT 16 but there is no guarantee that will help if the camera doesn't recognise the card.

Maybe not impossible, but the precise point of focus is just a hair width. Any more than that is down to the DOF of the lens as Algi says.

Just to add, the trailing bird is more in focus than the one in front and from your original image it might sharpen up quite well.

The water drops where the birds were do seem to be in focus so its down to the shutter lag between pressing the button and the shutter firing. It had been in focus a moment earlier! This has always been the Achilles heel with all SLRs. Lifting the mirror and firing the shutter isn't instantaneous.
To quote Ken Rockwell, "By the time the SLR mirror gets out of the way, your decisive moment is gone."
http://www.kenrockwell.com/tech/rangefinder-vs-slr.htm

Well caught and well composed.

Alternatively:-
http://www.ebay.co.uk/itm/Pentax-SMC-DA-21mm-f3-2-AL-Limited-Lens-/191997720673?...

A couple of threads down the page:-
https://www.pentaxuser.com/forum/topic/f-s--pentax-hd-da-limited-21mm-f-3-2-al-l...

It's terrible, isn't it? Might miss the bus!