Oh, that's weird.
I mean, what it basically does is look up the installation directories for the CoH, Beta and Test, then watches the demo folders to see if any files are being created or changed, then tries to rename that file into a unique filename. It's not very complex, you can just start it and leave it running before or while you're playing.
Anyway, I'll poke around and try to see what might be wrong. When you start it, do you get a window with messages like "monitoring {CoH path goes here}?