The application does not assume a format for the data. That means that when you open the text file in ImportPoints.exe that you must tell it what the delimiter is, space, comma , tab, or whatever. In this case it is a space... see delimiter.png.
Check the preview.
Also, if there is no index field and there is no note field in the data file so uncheck them in the delimiter screen.
Check the last line in the point list and uncheck it if there is no data there or it will create a point at 0,0