Iwatchout REQUIRES a camera to function, or AHP will NOT start! I have an old Logitec usb camera plugged into my computer, and Iwatchout likes it and AHP starts.
Yes, I have a USB webcam that seemed to satisfy the older version of AHP. But it won't satisfy the newer version.
As far as I know, the IWatchout plugin for AHP needs a camera connected via a VA11A/12A/13A (The VA11A is not supported in Windows Vista/7/8. For those, you would need the 12A or 13A). Some people have reported success with other USB cameras, but X10 certainly doesn't support that in any way.
If you aren't using AHP with a camera, then why install the IWatchout plugin?
You can disable individual plugins by editing the "ahp_plugin.xml" file in the AHP folder, and remove the line for the specific plugin.
for IWatchout, it is this one:
<plugin id="AHXAVX"> href="avx.dll"/>
Removing that line doesn't uninstall the plugin, but it de-activates it. That should be enough to allow you to use the rest of AHP.
Instead of removing it, you can also just change the "plugin" to "noplugin", to see if that works. Installing an update, however, will re-enable the plugin. (so you'll probably have to re-disable them again if you re-install another update afterward).