Developer, do you use your own software? If so, you'll love this idea. Make it useful. What I'm talking about is the LaunchBar for Windows. You have a good start, but you lack a lot too.

Let's go with the good first:
You have ActiveLaunch in the tray, waiting for a keyboard combination upon which it will hop up and let me choose what to launch. GREAT!

However, you've decided that I am to choose which thing to launch with the arrows, this is a big mistake. Now ActiveLaunch is no easier to use than the Start menu in the opposite side of the screen.
I want to first bring AL up with a key combo (Win+Space was a fine one), directly type in the beginning of whatever I wanna launch and have the list decreasing as I type. If I wanna launch Kazaa, I want to press "Win+Space, K, A, Z, Return" and have Kazaa launching.

Secondly, I don't want to add all these things myself. At the very least, add the option to import all shortcuts in the Start menu on first run, and let me click a folder and choose to have everything in that folder added as well...

You have a great start, but thus far, this software is no easier than what Windows already has...