Uhhh I just noticed something peculiar. Sometimes if I keep closing and opening the DSEE Lite, eventually it freezes and opening new apps would not open. So after a couple of reboots, I began to noticed that when I would run the DSEE Lite from anew with the Engine.ini deleted, the CMD window would pop up for a bit and disappear for some odd reason. Then when I would press GO again, a window pops up detecting and asks me to select GPotato, THQ/ICE or IAH. Then the whole DRAGAONICA.exe popup occurs all over.
This is a repeatable error and able to cause it again over and over without any drastic changes.