SM not starting correctly

Today I upgraded when prompted to the most recent version of SM 1.40.9 and created a new dat file and went to use the start mining for the first time option as I believed I would have to do all this following an upgrade.

However its not working. I get the below error

Failed to find connect button; 0xFFFFFF 0x342713

Below is my log

What seems to happen is that EVE opens up using the dat file, with screen size etc all correct for SM, but it fails to run properly. It then closes down and starts up eve without the dat file settings meaning that it cant work correctly.

20100726183914 :: 855 - First Run Started
20100726183914 :: 857 - temppath= C:\Documents and Settings\Gregor\Local Settings\Application Data
20100726183914 :: 858 - Y-Offset=0
20100726183914 :: 873 - Evesettingslocation= C:\Documents and Settings\Gregor\Local Settings\Application Data\CCP\EVE\C_Program_Files_Copy_of_CCP_28th_Dec_EVE_tranquility\settings
20100726183914 :: 889 - Evesettingslocation folder cleared
20100726183918 :: 908 - Gosub StartEveAndLogin
20100726183918 :: 9216 - Starting EVE and login module
20100726183920 :: 9270 - Settings copied from local folder, errorlevel=0
20100726183932 :: 9278 - Eve Started
20100726184239 :: 9323 - Failed to find connect button; 0xFFFFFF 0x342713
20100726184241 :: 9327 - Goto StartEveAndLogin
20100726184241 :: 9216 - Starting EVE and login module
20100726184243 :: 9270 - Settings copied from local folder, errorlevel=0
20100726184255 :: 9278 - Eve Started
20100726184257 :: 9299 - Current eve resolution, W=128

Please help, and let me know if you need any more info from me.