There must also be a flyable computer available for Nefarious to do FSO. So he doesn't keep talking about it for eight and a half hours on Friday night!
If I recall correctly, I had the same problem some time ago. I had to erase the AHEDMISS.CFS and the ahedmssw.cfg files. I was then able to get it to work, loaded a terrain and then saved it to create new AHEDMISS and ahedmssw cfg files.