Never heard of the FOS.0.1 deal, but what you describe sounds like EXE associations are messed up. Check under a start/run/cmd window, use the following:
run 'assoc.exe', make sure that .exe=exefile
then run 'ftype exefile' make sure that exefile="%1 %*"
So ur output should look like:
C:\>assoc.exe
.exe=exefile
C:\>ftype exefile
exefile="%1 %*"
If ftype is wrong then use: ftype exefile="%1 %*"
If no luck, then check under the 'Has encountered a problem' screen, where is says 'Click here to see what information this error...', locate the 'ModName' & search on that too
Also see what happens if you launch via start / run / iexplore