Don't quit VGHD while running on you'r desktop !
Allways first turn VGHD off from running, after that you can quit VGHD.
Now it's save to (if you) shutdown your PC.
See if this works,
1- run VGHD,
2- turn it on,
3- turn it off,
4- quit VGHD.
5- delete demos.lst in data folder
6- Start/Run VGHD again, turn it on.
It works 4 me, i have this demo problem everytime when i get a critical error, and cant shutoff vghd before quitting, because crit ***** me only to quit the program.