I've got the exact same problem. The funny thing is that I've been using LS on this computer for a long time, but then my hard drive crashed and it was replaced with another one, and now when I have installed LS and switch to LS-mode, I get these messages mentioned above and I am left without a shell. According to the task manager, litestep.exe is running, but all I've got is a wallpaper, which I can't interact with in anyway. Please help me!