Ok i found out the problem and posted it on the main page XoloX loads. The problems you w2k and wXP users have it that the temp folder is being set to a 'read only' folder and hence can't write to it / can't download.

go here for solution: www.xolox.nl/client/support/faq.html#bugs

or just change the folder attributes of your temp folder to *not* be read-only

Future download versions will have this error corrected soon hopefully.