Sorry I've been way too long in getting back to this. Ed have you tried running the program as administrator? That some times can fix a lot of things. I'm still unable to replicate the error so if running it as admin doesn't fix it I'd suggest opening a ticket with Xara support.
Edit: I've just thought of one more possibility did you use the setup button to add the filter forge plugin folder to the list of where Xara looks for plugins? If so make sure that the path is correct c:/program files(x86)/Filter Forge 3/Plugin/ and make sure that enable host specific plugins is checked.
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