Ah...
I just tried to download the ddi files (Windows XP, No Insider Account) and get the same error when it hits the powers index.
So here is more data for you
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Welcome to the 4e data downloader. Please choose an option
by pressing 1, 2 or d, or press any other key to exit.
For more details on this program, please see the 4e user
manual (Hero Lab -> Help menu -> 4th edition manual).
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1. Download data (no D&D insider account)
2. Download data (with D&D insider account)
d. Delete existing data
x. Exit
Connecting to server...
Retrieving deity index... done.
Retrieving skill index... done.
Retrieving ritual index... done.
Retrieving item index... done.
Retrieving class index... done.
Retrieving race index... done.
Retrieving paragonpath index... done.
Retrieving epicdestiny index... done.
Retrieving feat index... done.
Retrieving power index... (page 1/5) done.
Retrieving power index... (page 2/5) done.
Retrieving power index... (page 3/5) done.
Retrieving power index... (page 4/5) done.
Retrieving power index... (page 5/5) done.
Retrieving background index... done.
Processing deity index... done.
Processing skill index... done.
Processing ritual index... done.
Processing item index... done.
Processing class index... done.
Processing race index... done.
Processing paragonpath index... done.
Processing epicdestiny index... done.
Processing feat index... done.
Processing power index... Could not parse XML document 'C:\DOCUME~1\HP_ADM~1\LOC
ALS~1\Temp\ddicrawler\powers_index_1.xml'. power import could not continue.
Press any key to quit.