Hi,
What are the steps that you took that led you to the error message? Have you completed the initial setup?
To get it going without the IR emitter setup, you can run setup and choose "Capture only" option. Name the profile something like "HDPVR2 HDMI" for example. As imeric suggested, when asked to choose a capture channel, choose "SerialDigital", and choose "AES Digital In" for audio input. Follow the steps of the wizard. A "channel" named "HDPVR2 HDMI" (or whatever you named it) will be created. You can then play that channel.
By the way, the two files that you posted seem to be identical. If you intended to post a log file (since you name one of them log.txt) please make sure you first enable logging by going to Help > Logging, and check the checkbox "Output to a log file". Then you can perform any task that you want to be logged, such as playing the channel "HDPVR2 HDMI". Please post the log file after you get one.