Personally - With all game creator stuff...
#1 - I go with defaults
#2 - I started over from Scratch to get mine working, and there are possibly still some install bug especially with non-english version of the setup wizard etc etc. (SO I've read...in english! LOL) This includes revoing ALL DirectX, ALL C++ Compilers, All Microsoft SDKS... and following the driections verbatum.
Did all that and still doesn't Work... Well OBVIOUSLY You Screwed UP! (Just kidding took me three times I think... a day of fussing about until I opened VS2008, tried a "New DarkGDK wizard thingy" and LOW and BEHOLD... IT WORKED!!!!)
So hang in there and give it a whirl. The GOOD news is once its running right... it seems to stay running right.
Good Luck.