Not sure the this old (2004?) application is suitable for use on Windows 7. Certainly Xara have put it away, it's been replaced with Xara Web Designer.
However, one thing you can try is to remove the application and then reinstall it as administrator (right-click the setup file and choose 'Run as Administrator)
Then, on first run - do the same thing, right-click desktop icon and choose 'run as administrator')
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