If you are running a 64-bit operating system, you need to make that:C:\Program Files (x86)\Steinberg\VstPlugins\Edirol
You could also try running Process Monitor to see what happens when the vsthost.exe process is loaded.
I have sent you a message containing a link to an alternate download of foo_midi.zip which contains another vsthost.exe. This one should reveal more about the failure through the exit code in the Process Monitor log.
Yeah, mudlord is looking into the issue for me, so it may be fixable.
The component is already designed to terminate non-responsive vsthost processes, if it can't, it's beyond my control.