I downloaded the 0.36 version and tried it some. My big problem is that I can't in any way shoot or even aim as not even the crosshair will show, at all. The only thing I can do is fly around trying to avoid them baddies and use the bomb with the right mousebutton.

The Xwars.log contains the following:

HGE Started..

HGE version: 1.52
Date: 05.12.2006, 03:35:47

Application: XWars
OS: Windows 5.1.2600
Memory: 2095532K total, 1632180K free

D3D Driver: nv4_disp.dll
Description: NVIDIA GeForce 7900 GTX
Version: 6.14.10.9147
Mode: 1024 x 768 x X8R8G8B8

Sound Device: SoundMAX HD Audio
Sample rate: 44100

Init done.

resource.res, line 114: Unrecognized resource specificator 'SnakeGreenExplosion.psi'.
Can't load resource: Shield.png
Can't load resource: arista96.mod
Can't load resource: shot.mp3

Finishing..
The End.

Hi anon - you probably have a gamepad connected (or the game mistakenly thinks you do). Try pressing 'P' to go force keyboard/mouse mode (it's all in the readme file)