OK, I just realized that in order for this to work you must rename a blank text file as "test.file" [without the quotes] and place it in the PSP/GAME/XMBeditor/applications/XMBeditor/data folder for this to work.
Otherwise it wont set up the recovery. (and the app won't work)
Other than that, it should work great.
Sorry for any confusion.... uploaded it in a rush, and now I'm at work.
Anyway, I've had some fantastic input on requested features, so I will be adding them abd updating this frequently.
~shizzy