OK, I have done some further testing.
I always install programs in custom locations, usually on a different drive to the system. It allows me to sort programs into categories.
I have now re-installed MACH3 to the default c:\MACH3 location and your dropdown now reads the description correctly.
Strange - I would have thought that if it could find the file, it would read it correctly. Maybe there is something unusual in the format of the .DAT file.
Anyhow, it now works correctly. Incidentally, the problem and fix apply to both WIN XP and WIN 7.
Thanks for your help - love the wizards.