M,
that is NOT what is happening...
when you click on "NO" the program EXITS.
I got around this by doing the following.
Go to control panel > add/remove programs > uninstall wavepad.
When you uninstall it, the program will ask you if you want to UNINSTALL, or just STRIP the program of the NON-free features.
Click on this, and it will reduce Wavepad to the free version