Step 3 - BSP Directory SettingsAs directed by the INSTALLING (read this!).txt file, open up bsp\pball2\game.ini in notepad or the editor of your choice. You should be able to double click on it to open it. Edit|Replace "c:\bsp" with wherever you ended up putting bsp. For example, if you extracted the zip to your D: drive, replace it with "d:\bsp". If you put it in c:\program files, replace it with "c:\program files\bsp". Next open up bsp\pball2\quake2\pball\compilers\rad.bat and do the same thing.
That "inprogress" file must be hidden pretty well, cause I can't find it.