Basically, on Windows, there was a problem with previous free versions where if you installed the full version on top, it would use the same folder, upgrading the installation, but then if the user uninstalled the Free version, because filenames were the same, it would remove parts of the Full Installation, which was a nuisance to say the least. Free Edition 2.2 ( and future versions ) installs to a different folder, so that ArtRage Full and Free edition can be independantly installed and uninstalled without causing problems.
I assume from your message that you had the older free version, then installed the newer free version. If you check on your computer, do they exist in two separate folders? Let me know where you find them and I'll take a look here. That screenshot to me, looks like the old version trying to use the resource file of the new version. To fix this, uninstalling your old version may work, but to be extra sure you can uninstall them both and reinstall the new version and you should find that everything works correctly once more.