Are there spaces/gaps in any of the directory's your using?
Try manualy running the raf_compiler.exe instead of drag and drop. To do this you have to use the command prompt (cmd.exe) then follow these steps
1. cd into the raf_compiler.exe directory like this
cd C:\Users\Glowball\.....\bin (then press enter)
2. type the .exe you want to use along with the file and directory
raf_compiler.exe C:\Users\Glowball\....\Themes\Uncharted3\SlideShow.xml (then press enter)
The raf_compiler.exe will start and any errors made will be displayed. Let me know what the error is if you can't work it out
Could you please present the entire command of step 2?
And what does cd mean?