Ok, found the issue ... everything lately is a learning curve.
Since this was a Vista machine, the program was being installed in the Program files(x86) directory for 32 bit compatible programs.
When the WDModFic would run, it was looking at the above captioned directory but it really should have been modifying the files in Vista's VirtualStore. (Apparently, Vista does not like software accessing data files in Program Folders *sucks*)
After we pointed to the correct (but hidden) directory, all files were updated and the program started with no problems.
I'm thinking that I should have a 64bit exe for Vista clients. Thoughts?
Georgio