Problem: Adding Xenon templates does not work and causes buggy behavior in another way.
Steps to Reproduce: File -> New -> Add Template. In the window the appears, pressing Cancel will show a 'File Copying' screen and will create your current templates in your 'XenonPortable' directory. That's your buggy behavior.
However, when actually trying to add a template, say PHPDocument.php, it will say the file/folder already exists in a 'Replace File' window saying the source is P:\PortableApps\XenonPortable\App\xenon\NewFiles and asking if you would like to replace. Pressing Yes will not create the template in the 'NewFiles' directory or throw it in your XenonPortable directory like was somehow happening. I also just noticed the default templates were created in the root of my drive at some point which is where I was adding PHPDocument.php from and I had Xenon currently focused on.
Xenon also typically stalls after this problem when left sitting for a minute and no actions can be performed and Xenon must be killed. Xenon also just stole my ability to backspace when it froze. :P Odd. :P