Strange, this version is much better, I rewrote much of the code.
I need more info in order to help you:
-Is it placed on a read-only drive/folder?
-Did you change the output folder? Look it up on the settings tab.
-How about shell context menu? Does that work for you?
-Operating system and is it 32 or 64 bit?
The only bug I know exists for sure is converting non-squared images, its already fixed on my side, I only need to upload it.
But since I'm moving away from Google code it will take a couple of days.
Let me know