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I believe this field is for synchronizing your images from DW MX to Fireworks. That way, you can click a button from within DW MX and edit in Fireworks, then jump back to DW MX.
Do you have Fireworks installed?
I currently use DW MX. I've had some weird installation problems with this in the past. I would try uninstalling dw. Afterwards go to your programs folder and delete all the DW folders. And re-install it.
When you start MX go first to 'site' shown in the 'files' on the right side of the screen. And change the start up site to any other site than the one listed. (This is currently the default start-up site.)
Close MX and restart. Then look to see that the start up site is the different one you just chose, and if it is, you are ok.
There seems to be something that corrupts the ini file for the current default site, and changing the default site appears to reset the problem 'whatever'.
Your create-site should now work without crashing.