You probably don't have the 1.0 "default.xbe" on your HD. Are you sure it's there? If it's not there, simply copy it from your Halo 2 DVD to the Halo 2 folder on your HD (don't know if the launcher works using the DVD drive). The 1.1 "default.xbe" file goes into another folder.....it's all in the Halo 2 Launcher's readme.