If the program is giving you that dialog then your installation's main configuration file is damaged.
Are you on Windows or Mac? If you are on Windows you can simply uninstall and reinstall the program to solve this.
On Mac you'll need to follow these steps:
Mac OS X Tiger/Leopard/Snow Leopard Manual Uninstallation Instructions:
(Assuming you installed to Macintosh HD and your user name is USER)
1. Applications : Vyzex Pocket POD : Trash this application.
2. Macintosh HD : Library : Application Support : Psicraft : Vyzex Pocket POD: Trash this folder.
3: USER : Library : Preferences : Sound Quest Preferences.ini : If Vyzex PocketPOD is your only Vyzex editor, then you can trash this. Otherwise open it with textedit, delete the text blocks with the headings containing Line 6 Pocket POD and then save the file on exit. This file is the software's answer to the Windows registry when running on Mac, incidentally.
4: USER : Library : Preferences : Psicraft : Vyzex Pocket POD: Trash this folder.
5: USER : Documents : Psicraft : Vyzex Pocket POD : Enter this folder and trash only the Default.SQ9 file contained within. The other files in this folder (and subfolders) are your collection and any data files you may have created with the editor, so don't trash these if you value them at all.
You can then proceed to re-installing the v1.17 editor.
Please let us know how it goes.