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For issue #1, it seems your Desktop Deployment is not installed properly. The log file located in <AutoVue Desktop Deployment installation dir>\bin\Logs should contain the error in more details. I would suggest re-install Desktop Deployment to see if the problem still occur.
Regarding your code, after ax.initActiveX() is called, you need to wait for the doneInit event that signals the ActiveX is completed initialization, and only then you can call the setFile method
For issue #2, i am not sure which flavor of the product you have (AutoVue Office, 2D Pro, etc.) Each flavor support different set of file formats so please make sure the file you are viewing is indeed supported by your product flavour.