There seems to be a simple fix for the problem. I learned the solution
in the Fedora Forum from a user with a x86_64 system with the same
problems.

After upgrading to Fedora 14 a upgraded version of wine-preloader is
installed in /usr/bin/ and an older one in /opt/google/picasa/3.0/wine/
bin/

Open a terminal and copy just this upgraded wine-preloader into /opt/
google/picasa/3.0/wine/bin/ as below

su
cp /usr/bin/wine-preloader /opt/google/picasa/3.0/wine/bin/wine-
preloader
exit

This does the job and no more need to install Wine and picasa38-
setup.exe

It works on all systems (4) like a charm!

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