Failed to start nxagent: No such file or directory

When launching X-Win32 you may receive the following error

An error occurred while running LIVE
Failed to start nxagent: no such file or directory.

This error means that the LIVE Server has not been properly installed. You must install both components of the LIVE Server:

LIVE6Server
LIVE6ServerOSS

nxagent is located in the OSS portion of the LIVE Server

LIVE Server Download Page