@mrsam
Seems that in fixing one problem another has been introduced. I believe MobiOne’s new memory settings are too aggressive for your machine’s available memory. We need to reduce the memory setting of mobione. Can you try making this small memory configuration change to mobione and see if it fixes your install:
1) Open the mobione.ini file in editor such as notepad or wordpad
Win7/Vista: C:\Users\youraccount\AppData\Local\MobiOne Studio\MobiOne 1.3.1\mobione.ini
XP: C:\Program Files\MobiOne Studio\MobiOne 1.3.1\mobione.ini
2) Near the bottom of the file change this line in red:
-Xmx1024m
to this line in blue:
-Xmx512m
3) Save file
4) Launch MobiOne
Let me know if this clears up the situation.