Can't install CCE

Hi all,
trying to convert my 1st internet avi movie with DivxToDvd, fast, 5hrs, but turned out poorly, really blurry and out of focus etc (job to read words on screen) audio is fine, So now trying with the Film Machine and hopefully CCE but can’t get it installed. When starting the program (click the exe file) a window opens (CCE SP setup updater) with 2 lines. The bottom (output setup is already filled in, ( when clicking exe file ). The top line, Reference setup is my problem, tried everything possible on this line, click OK, but it comes back saying: invalid file or can’t create file, failed etc. Tried in all the forums for info or CCE or manual, but cannot find solution to this glitch (maybe its me) any help appreciated, thanks, Bill.