Right, I found the cause of the problem. VE-Engine has to connect to the Internet to be able to do its magic. I use Proxomitron a web filtering proxy for my browser. VE Engine automatically uses the same connection as the browser, in this case using the local proxy.
When Proxomitron is enabled the VE green border that pops up automatically after recognising a logo\image doesn't work (one of the Proxo filters must be blocking something relevant).
So, I'd like to request user definable proxy settings for VE Engine in the next version.
Hopefully soon...
