Hmmm, that's strange. On the other hand, the iLiad javadjvu is not one of the most stable pieces of software.
Could you try
http://test.wikipedia.org/wiki/Image
jvu2spec.djvu ?
That one works with javadjvu on my iLiad. So if it doesn't work then something probably went wrong with the install. If it does work then there is something in your djvu files that the iliad version doesn't like (though I couldn't tell you what that is exactly).
I guess it will be the latter case, since your iLiad is at least attempting to load the djvu files.
I am still working on the viewer, but only when I have a few spare hours. I currently have a version that includes "zoom to fit" working on my iLiad. Unfortunately that one seems even more unstable, so I'm still working on it.
The new version will include an uninstaller, though.