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Good news, everything is sorted out.
On Pdurrant's advice that it was very unlikely to be a bug within parallels, i decided to focus on windows.
I opened parallels, and deleted the virtual machine of XP profesional i had installed the previous day. I then proceeded to re-install the same edition of XP but this time i chose to keep the Mac and PC files separate. Downloaded monipocket creator again and this time it loads as it should.
Not a 100% sure why it worked the second time around, but i believe it has something to do with XP being very old and not being able to read files directly from the mac hd.
Weird, but hopefully this helps someone.
N.
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