Update: This story offers a better workaround for this problem than the reinstallation described below.
Original Story: Daniel Kinney sends word that after updating Q3Test 1.06 to 1.07, he could no longer launch a dedicated server. I don't know if this is a universal problem but if it's one you share, he offers a solution that worked for him: Download the full 33 MB 1.07 installer, completely delete version 1.06, and install 1.07 from scratch.