I have the same problem!
Does Loader say ready at the bottom, I'll bet it doesn't..... If you unplug the network cable and bring it up it will.
If you try this, try to put some xbe's in the e:\apps directory? (named default.xbe of course.
I don't see any of the items I put there on the loader menu, even though it is configured to scan there.
Are you K:4817 D:4902 (or whatever the live dash is)?
Morden.
PS:
To put \ in paths in your posts, put \\ instead. It will be converted to a single \. If you go back and edit the post, make sure to fix these up as the edit screen reduces them to a single \ and when you save your edits it will no longer show up!