Same exact issue here. Very frustrating.
In my case, it seems that uninstalling Beta 1 caused some problems which lead to the conflicts I encountered. I installed Beta 2 on a different machine that had never had Beta 1 installed and everything works as advertised.
Before installing Flash Catalyst, any previously installed Catalyst builds must be uninstalled.
Also, make sure that you restart your computer after uninstalling beta 1 and before uninstalling beta 2. The installer asks you to do this, but it's easy to miss -- and you will get these exact kind of symptoms if you don't restart in between. If you're already having these problems, please uninstall beta 2, restart, and then reinstall it. (If you want to be extra cautious, you can also check the program folder for any leftover files and delete them manually).
Hope that fixes everyone's setup -- please post back here if not. Apologies for the installer problems; just like the rest of Flash Catalyst, our installer is essentially a beta right now. Thanks for all your patience as we work out the kinks!