my appoligies, but there was an error on the %APPDATA%\Microsoft\FSX\EXE.XML. It said it could not find it.
Who said it couldn't find it ? Our installer ? It should have created a new one, in that case!
Something is not right, are you maybe running into FSX into XP Compatibility mode ? That would be a problem, because that mode shouldn't be used, because it creates havoc with all the standard folders.
In any case, try to copy this into Notepad, and save it as EXE.XML in the %APPDATA%\Microsoft\FSX folder
<?xml version="1.0" encoding="windows-1252"?>
<SimBase.Document Type="Launch" version="1,0">
<Descr>Launch</Descr>
<Filename>exe.xml</Filename>
<Disabled>False</Disabled>
<Launch.ManualLoad>False</Launch.ManualLoad>
</SimBase.Document>
Be sure you save it as EXE.XML and not, for example, EXE.XML.TXT which Notepad might default to.
After you do this, run the GSX installer again.