I think it may be an x64 issue. Seems to bomb out on the installer on several different machines both win 7 and Vista x64 unfortunately I don't have any machines with a 32bit os installed.
I just used scrapebox to create the feeds, unfortunately they all have the same title and description for each one (248 files) so that is a drawback but you would know better if it will cause an issue. I don't know if feedforall has the capability to sequentially change the title and description for each feed, which would be nice but maybe that doesn't really matter.
I'm submitting them now via RSS Submit SEO version. I used the same spreadsheet system/video you laid out to autopopulate rss submit for sls when i uploaded my backlinks from another bookmarking effort of @ 3k+ bookmarks via scuttle/pligg/phpdugg. Good stuff and huge timesaver! 3,000 links x 248 feeds is only 744k backlinks... ;p