You have been of great help. I am definitely marking you name down.
Your scenarios is exactly what happened to probably 10-20 people who have the problem. I'm still trying to figure out the root cause.
In term of window workspace, this is what's under the hood.
Stencyl 1.4x
For stenycl 1.4x and prior or that, there are 2 installation areas, one for the stencyl program itself (defaulted to C:\Program Files\Stencylworks) and one for stencyl data files (generally defaulted to user <home folder>\stencylworks.). The stencylworks folder contains subfolders like games, logs, extensions which are pertinent to user game data. There is one additional file called Stencylworks.prefs which contains user preferred settings (global settings that controls Stencyl data file location, naming and others)
One of the most important field in this file is :
global.workdir=G:\Documents and Settings\<user name>\/
which let one control where all existing and future data files should reside. This field is settable by going into Stencyl Program and changing the workspace under File-> Preferences-> Workspace ->Workspace Folder.
One other note of interest, in window system, one's home folder is located at:
C:\Document and Settings\<user name> for window xp
C:\Users\<user name> for window vista or window 7.
Stencyl 2.0
For stenycl 2.0, there are still 2 installation areas, one for the stencyl program itself (defaulted to C:\Program Files\Stencyl) and one for stencyl data files.
The data files location are now defaulted to:
C:\Document and Settings\<user name>\Application Data\Stencyl for window xp
C:\Users\<user name>\AppData\Roaming\Stencyl for window vista or window 7.
Under these Stencyl folder, you will still find the stencylworks folder and Stencylworks.prefs file
Stencyl 1.4x to Stencyl 2.0
Now comes the most important part of our transition from 1.4x to 2.0.
If Stencyl can find BOTH the Stencylworks.prefs and stencylworks, it will:
(a) Move the Stencylworks.prefs to our new location:
C:\Document and Settings\<user name>\Application Data\Stencyl\ Stencylworks.prefs for window xp
C:\Users\<user name>\AppData\Roaming\Stencyl\Stencylworks.prefs for window vista or window 7.
(b) Retain the location of stencylworks which in most cases is under user <home folder> (Note Stencylworks.prefs contains info of this workspace location).
If Stencyl cannot find the Stencylworks.prefs or stencylworks or neither of these items, it will be set to the default location as mentioned above.
C:\Document and Settings\<user name>\Application Data\Stencyl for window xp
C:\Users\<user name>\AppData\Roaming\Stencyl for window vista or window 7.
Under thse Stencyl folder, you will find a new stencylworks folder and the Stencylworks.prefs file with workspace now pointing to ...\AppData/Roaming/Stencyl.
Hope all this make it clear.
Since I requested you to rename stenylworks folder, it is essentially asking Stencyl to reset to it's default data file settings and location.
"Obviously this is a bit of a moot point but why is that? I'm just curious as to why reinstalling and a different workspace path can fix this problem. This is more a question of wanting to know than needing to know." This is exactly what I am trying to figure out too.