I think I was having the same problem, when I installed 1.2 over 1.1 it looks like it was putting EB 1.2 in another folder inside the EB 1.1 folder... maybe it asks where you installed EB, I point it to the EB folder, but it actually wants the root folder...
Just check where you have EB installed 1.1, and see if you have another folder inside that named EB, then merge them back together (i.e. move the contents of second EB folder: C:\...\...\EB\EB back into the first one: C:\...\...\EB\) it will probably want to overwrite files so just say yes, and see if that makes a difference.
***Make sure you back up before you try! I could be wrong!***
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