I heard about this stand alone converting at the Solutions Bundle Agreement meeting last summer during Devcon. It supposedly supports some type of parallel processessing to convert much faster than the normal FMP client. I even downloaded the app, but have never used it, so I can't be of much help. But what I would probably check on based on the above "File Cannot Be Found" error, is to move the files to and try converting them in a new location. You might also want to check on the permissions since that can trick up FileMaker frequently.
From the code you've provided the executable is located on your "D:" drive. Is this a CD? I suspect the executable is trying to create a temp file for the conversion and it cannot create it so it cannot find it.
If my supposition is correct try moving the executable to the "C:" drive and running it from there.
If that doesn't work then perhaps there is a file indexing problem. If you are using a Mac then the Spotlight index could be incomplete or corrupted. Check the Apple Web site for instructions on how to correct it.
Most times it is very good to include the version of FMP/FMA/FMS/OS/FM Plugins that are in use when the problem occurs.
The 'D' drive is not a CD. It is a data partition of the main internal hard drive. All my data is there.
The computer I'm using is Windows 7 Professional, not Mac.
The version of FMP/FMA/FMS/OS/FM Plugins is not relevant here because I'm talking about the Standalone Converter.
What are the permissions for the folder you want to save this in?
Read & Execute: Allow
List folder Contents: Allow