sounds like you do not have the .NET Framework required to run a .NET app. No worries...
Xbe Shortcut Maker 1.0 and Xbe Shortcut Maker 2.0 are now both in the usual place
//PC/xbe-xip-xbx tools/Xbe Shortcut Maker/
1.0 requires the .NET 2.0 Framework, 2.0 does not - it is completely rewritten in C++/MFC. Also supports command line parameters for both itself and the xbe to be launched. Developed for and tested working with Carcharius for use with Quake 3 mods. Should also work with Xport emus supporting cmd line params to launch a specified rom, see emu docs for specs. To the best of my knowledge this is the only way to pass params to an xbe being launched as the running xbe and the xbe to be launched must have the same titleid for params to be passed, and you can give the shortcut the matching titleid