OK, just installed in a brand spanking new VM (VMWare). Exactly the same results. Didn't check the INI file contents. This was a virgin install on a brand new VM. No earlier version of DMD had ever been installed.
I'll go check New Online and also check what's in that section of the INI file on the VM. One thing, on the VM install, I unchecked everything but the program, which maybe that gives a more minimal install. Is the initial INI file canned or might it be responsive to install options?