Hmm, maybe you decompressed the folder or copied the contents over the wrong way somehow. On a computer, you should see an "_fbreader" folder (and perhaps metadata.db) inside of "Programs" on the root of your SD card.
On the DR1000, the "Programs" folder should appear to be empty other than the shortcut, PNG files or anything. Because the paths are hard-coded, the location and folder names need to be *exactly* like that.
For me, it worked without a problem. As a matter of fact, I moved the FBReader shortcut ONLY into /System/Desktop so it appears right away in the Home when I turn on the reader.
(Oops, looks like Adam beat me... slow wordy typist that I am -_-;)
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