I think there is an underlaying issue to this, which occurs before you even launch the game. Thats why the games arent starting for you, so its not really a launcher problem.
First off: Are you sure PiTool is running in the background - and do you have connection between PiTool and PE? In other words, can you change any HMD settings through PE? If not, then the connection is not establioshed. In the upcoming version 0.60 coming anytime, Armin have fixed a lot of issues with the connection between PiTool and PE, and also you will have a real-time status shown if connection is OK or not.
But until the version is out, could you please provide the Player.log file here? Just use pastebin.com to paste the entire log content and give us the link here in this thread.
the Player.log is found here: