Can't start Avidemux from AVS proxy

[torpare]

All attempts to do this have so far failed (since recently re-commencing use of Avidemux after a lengthy interval).

I'm posting in this forum because I've reverted to using ver. 2.5, having started-out by installing and using ver. 2.6.  I switched in case the problem might be peculiar to 2.6 but the behaviour is exactly the same in 2.5.  I'm attaching the adminlog file from 2.6 in case it gives any clues.

I've tried 'AVISource', 'DShowSource' and 'AVISource' and every time got the error "Failed to start Avidemux: The Avidemux executable could not be found in current directory". 

This is completely mystifying to me.  Which directory is "current"?  Presumably it can't be AviSynth that's meant (why would the Avidemux executable be there?).  In the Avidemux directory ("folder" in Winspeak) the executable is of course present.  So what is meant, and how can Avidemux be started from AVSProxy?  Or doesn't it matter?

I'm thoroughly confused and would welcome clarification.

Edit
Perhaps I ought to have said that I'm using Win XP Home

[AQUAR]

I know its an old post, but I was just looking at all these various threads.
Others might also be looking and wonder about an answer.

My guess - AVS proxy is looking for avidemux2.exe and what is in the folder is avidemux3.exe or just plain avidemux.exe.
If the avs file and proxy bit works could just run avidemux and connect to the proxy under - file - menu.
For the portable version I always manually connect and have the autostart avidemux in AVS proxy turned off.