I'd have to see what your ini file looks like.
You could try testing this out with a CD-RW, to save time and effort, as well (that's how I test before releasing now).
Hopefully, I'll work out some means to keep the "main" resources with the XBE file, which means using the system will be easier.
At the moment, in the root directory of the disk, you need the default.xbe, the mxm.ini, and whatever images you are using for screen shots.
In the Media subdirectory, you need the font and resource.xpr files.
Finally, you need at least one skin subdirectory.
I have not tried this with a single entry, I'll have to take a look tonight.