Well, I may have spoke too soon. After trying the zip file on my laptop it didn't work...same 'Unknown Database' error. Then I think found out something else, there a difference between the two pms_config.ini files that say something about "if the database files from the dbdir directory will be mirrored to a directory of the local machine". This is set to zero in 1.1, and 1 in 1.2 and 1.3, probably related to the upgrade to server2go-version to 1.4.3 at Demo version 1.2. So this is why it worked on my "dev" machine and not a "target" machine, and probably GauGau had the same issue?
Anyway, long story short I'll try to see if I can get it to work on both my machines, and then upload another zip file.
Also, anyone who's run the demos probably has a directory "C:\MyS2GApp" that gets left behind (this is where the server2go software was mirroring the MySQL databases).