Error: Virtual Restore cannot read backup.sqb

I am unable to load a .sqb file in Virtual Restore. It returns the following error when selecting the file:

Virtual Restore cannot read backup.sqb. Check that the file's location and extension are registered with HyperBac.

HyperBac is setup to use .sqb files in all locations.

The volume is a local volume.

The HyperBac service is set to login with an admin level account for testing purposes. The folder was opened to the Everyone role. Neither of these cause a change in the error.

The database that this is a backup of is approximately 2.2TB. The backup is approximately 391GB.

Log file output:

*******************************************************************
*
* 22 Mar 13 16:26:45.874 OPENED LOG FILE
*
HyperFileId=0x0000000000000006
HyperFile=0x0000000009343870
FileName=U:\Snapshot\FULL_MSSQLSERVER2012E_BoomTown_20130321_220000.sqb
OpenTime=Fri Mar 22 16:26:43 2013
OpenProcessId=1804
OpenProcessName=sqlservr.exe
ProcessAttr1=0
ProcessAttr2=0
FileIndexNumber=0x000A000000000040
FileCreationTime=0x01CE270027CF556A
VolumeNumber=0x2E1DC438
HeaderVersion=2
FileType=8
FormatVersion=0xFFFFFFFF
CreateVersion=0x05090000
CreateOS=0x00010601
FileFlags=0x00000044
RequiredVersion=0x00000000
WriteAccess=No
FillFactor=131072
VirtualEOF=0x00000A0000000000
FileActualStart=0x0000000000000000
FileActualEnd=0x00000061C2841400
LastDataBlock=0x00000061C2840000
FileActualMetaEnd=0x0000000000000000
LastCrcOffset=0x00000A0000000000
SequentialOffset=0x00000A0000000000
LastBlockOffset=0x00000A0000000000
IndexType4Format=1
IndexStart=0x0000000000000000
IndexEnd=0x0000000000000000
OpenHandleCount=1
FileDirty=No
AsyncWrites=Yes
AsyncError=0
UpdateCount=0x0000000000000001
LastIoOffset=0x0000000000000000
FileState=0x00000001
LastSumOffset=0x0000000000000000
AffinityMask=0xFFFFFFFFFFFFFFFF
*
*******************************************************************

22 Mar 13 16:26:45.874 1012  GetVirtualBlockForSQB: We have searched the maximum iterations and haven't found the refid: 0
22 Mar 13 16:26:45.874 1012  HyperReadBlock: Failed to load comp data for SQB, File offset: 0xCE9690000. Error: 0xE2000001.
22 Mar 13 16:26:45.874 1012  HyperVirtualRead: Failed to read block at offset: 0xCE9690000, Length: 512. Error: 0xE2000001

Please advise.