It sounds like its telling you that the "Client and Editor\resources\config.xml file" is improper (something about whitespacing, I assume). Unfortunately the error trace doesn't explain much that the general public can figure out, so developers can explain more.
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As far as the config file goes, It should be something like the following:
<?xml version="1.0" encoding="utf-16"?>
<!--Config.xml generated automatically by Intersect Game Engine.-->
<Config>
<Language>English</Language>
<Host>localhost</Host>
<Port>5400</Port>
<RenderCache>true</RenderCache>
<MenuBgm />
<MenuBG>background.png</MenuBG>
<Logo>logo.png</Logo>
<IntroBg />
<Font>arial</Font>
</Config>
Maybe compare or attach your config.xml file.
Shilo's post in Failed to load options was marked as the answer