In your notes.ini, what is the value of "Location" ?
This location should be the name of the location you normally use for accessing notes dbs on your network. (e.g. rather than using an disconnected or island setup). If not, switch your current location accordingly, then re-try.
Still an issue? Then check Notes.ini for "MAILSERVER"? Verify this value is a correct server, because I am using this server to find your list of all servers. If not, correct and re-try.
Is the name of your domino directory "names.nsf" ? If not, that would be a problem. Otherwise when you open the Servers view in this database, do you see values?
This are basically the steps the application takes to build this server list, so checking it manually could help find a problem.
Before any of this happens, I do try to temporarily add notes.exe path to your path environment variable. However, if you have already done this - no other side effects should be experienced.
To find your notes path, I look at Classes path in registry. I look for .nsf subkey. I look at Shell\Open\Command and pull out the path where notes.exe resides. Since this part failed, I would be curious as to what you see here in your registry under this key as well.
Also, check the logs while the application is open. I think I got over-excited and clean them up whenever you relaunch the app. But looking at them while the app is still open should show everything it logged.
Finally, if you have more than one version of LNotes installed on this machine, that would be interesting to know. I have run it like this without any issues - it interfaces w/ the nnotes.dll of last one I installed. But... if you have more than one notes exe path listed in your PATH environment variable, that might cause an issue.