Yes, I have read it twice, and watched the important part of the video twice as well.
Yes, all the files are in the same folder, nothing as moved. Original, Pseudo, Converted to XML, Translated and exported XML... It is that one file that I am trying to convert back to PUB. I am really trying to play nice with the app.
And I tried this on two computers (similar setup though).
Thank you for taking the time!