You're saying it won't work in the simulator.. what exactly doesn't work? You can't see the terrain or the files won't load?
1) Make sure you're running the latest drivers for your video card. We've found many problems are fixed by simply updating drivers.
2) If you continue to have problems, do as Steel Phantom suggests, and completely uninstall then reinstall the software. You may have to key-in your registration code so be sure to have that handy.
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