dude, don't use that dinosaur win32 dev environment. it won't work since it doesn't even have gsKit in it.
you need to set up the MinGW/MSYS environment, and install the ps2eth and gsKit libs.
when you start it up, it will leave you in the home folder
/home/your username here/
that is where you would normally place the open ps2 loader folder.
if jimmi OK's then I may post up a snapshot of my dev environment that can be unRARed to the C drive of a winblows XP machine.
If you need help, post a question in the
forums, not my PM inbox. Thank you.