Also, if you have re-started FSX after having used Instant Scenery to create a scenery library object placement BGL, one must re-launch Instant Scenery and "Open" the BGL you created so that it can be displayed; FSX refreshes the flight session and the placement should then be visible.
Don't worry, there is a way to remove a BGL from that control over display after it has been created by Instant Scenery.
Do you have a scenery library object placement BGL that you have created with Instant Scenery which you would like me take a look at ?
...then save as a *.XML file type, and re-start FSX.
Run FSX in "Windowed" (aka NOT "Full Screen") mode as you may have to see and click a pop-up dialog to acknowledge the DEMO mode and its limitations before proceeding to use Instant Scenery DEMO in FSX.
...then save as a *.XML file type, and re-start FSX to see if I interpreted your 'path' correctly from your screenshots.
Let me know how this worked for you.
If it did not, and I am unavailable online here for the first part of the evening, don't despair, as we will still have a few more things we could do later tonight or over the weekend, which should get you up and running in the IS3 Demo.