OK, lets try it again.
Download the FAH No-Nonsense Text Only Console 5.04 from Stanford downloads here:
http://folding.stanford.edu/download.html
Save it to a download directory or your desktop. DO NOT RUN IT FROM THIS LOCATION.
Make a new folder somewhere safe, such as Program Files. Call it F@H1.
Make a second folder somewhere safe, such as Program Files again. Call it F@H2.
COPY F@H504-Console.exe into the F@H1 directory.
CUT and paste the F@H504-Console.exe into the F@H2 directory.
Enter the F@H1 directory. Run F@H5.04-Console.exe. Enter all the normal stuff (Team 36120, Private_Sector_Does_It_Better, etc). When it asks to "Set Advanced Methods" enter "y".
The Advanced Settings need to have "Run as a Service" = y, and the machine ID needs to be '1' and '2' respectively so the Stanford servers can tell the work units apart.
If in doubt, edit the "client.cfg" file. Make sure that your name and team number are correct, and that each client.cfg has either a '1' or a '2'.
I am sure that I missed some pretty important points, but I will be off to bed soon. We can continue here or you can FReepmail me.
Thank you very much for working through the setup issues.