Just to confirm Sledger's advice with my experience of updating Xara Designer 6. I did the following:
1) Uninstalled Designer 6.1.0... using Revo Uninstaller. Using the Revo defaults, the application uninstaller (in this case Xara Designer) is run automatically first, then it trawls the registry for leftover entries, and then your folders for leftover files. In my case, I selected all the registry entries and files offered and removed them all with no ill effects. But, you might like to browse them first. I have been using Revo for years, and have never known it damage my system by removing stuff needed by something else.
2) I then ran Ccleaner to clear unwanted/orphaned files from my system and to remove invalid registry entries. This is not necessary, but it keeps things tidy and, again, I have never suffered damage from using this utility. Glary Utilities does a more complete job with the registry, but with more power comes more potential for disaster!
3) Install Xara Designer 6.1.1.
4) It works!

In your case, of course, you would have to reinstall Xara Designer 6.1.0.. before doing anything else, since you have deleted the folder.

BTW Revo Uninstaller, Ccleaner, and Glary Utilities are all free.

Good luck