Hoster 4.0.2.0 HDZip Problem

[Hawkman]

Hi, first time user of the help forum. Here is my probem.
I down loaded 4.0.2.0 and at the start up of Hoster a window popped up giving me the option to convert HDZip Files. I checked that I had a back up file & ran the program. 90% of the way through it would hang up and give me the following message.
File not found: c\users\public\music\mtu\songs\TOM-169-1.kma
please make sure the volume is mounted and then click OK to retry this file
click cancel to bypass this file .
When I click OK or Cancel nothing happens the message is frozen. I have to go to task manager to get out of the window. I have reinstalled with the same results.
I am running XP SP3-IE7 2gb of memory. With the word public in the message I thought I may have copied the file from my Vista onto the XP so I deleted the file and downloaded an earlier version of it that wasn't transferred from vista. Still no luck

Any Suggestion--Hawkman