It seem to have a bug that made Xbench (Xinit.exe) fail in some case.
I've made a special version of the xinit.exe file. You can download it here: http://www.jimneray.com/download/Xinit.exe
If Xbench init.exe fail for you, can you replace the xinit.exe file and try this one ? I've fixed two smalls mistake and added an output window that count all the steps before the black fader on the workbench screen so if this is not fixing your issue, this will let us know where is the last working step and where this is going wrong.
Waiting for your returns