I remember there being a procedure for installing the heli update. Don't remember exactly what that was, did you see any special notes on this?
You may want to reinstall the 1.07 update and see if that sorts out the ability to run the program.

I thought the latest update is 1.1?

Okay follow this link if you are not familiar with it already and see if you can sort this out. I'd probably install 1.07 and get the thing running again and then follow the directions at this link.

http://www.fsone.com/Downloads/Default.aspx

Scott