I'm not sure why, but I had problems getting the 1.2 version to work also. So I uninstalled it, Ran the setup in version 1.1, then dropped the 1.2 leechhammer.exe on top of the old one, and everyting worked fine. Two other computers I set up, I used the same procedure, and it worked well there to.
It might be that the setup program of 1.2 is buggy, compared to the one in 1.1, but the program won't work correctly after without the 1.2 exe.
After setup, if I am using LH for auto-cheking, I set the interval for over 10 minutes (about 800 sec), so it doesn't run as often, as it seems to generate a resource leak or lockup, especially when running freqeuntly. I also like to unload and rerun it at least once a day to have it release any resources it may have tucked away.