Sorry, about the typo, you are correct, I meant 1.0.7 is the most recent version.
I looked at the crash report, and to be truthful, it does not help narrow down the cvause of the crash.
My First question was asking about the Site Definition > Local Info setting. what is the full path in the Local Root Folder setting?
I'm not asking about the configuration location at this point, I'm trying to get a sense for your Dreamweaver Site Settings.
A testing server is not 100% necessary if you are not creating dynamic pages, If ou are createing static html pages, then none is needed.