Here is the steps to make it work:
1) Install HP QC Connectivity Add In from the Add Ins page of HP ALM 11.00 - solves the QC authentification issue
2) Save the excel tool as .XLSM file - solves the Login screen dissappearance
3) Uncheck Enable Tree View for Downloads - solves the "nodes" error
4)Fill in the path following this pattern: Name1\Name2\Name3\... solves the "no nodes error"
a) Do not insert the first level of the path in the path name Instead of Subject\Name1\... use Name1\...
b) Do not use a backslash at the beginning of the path