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CadEditor is a cool tool, but it needs everything just right in order to work. It looks as if you clicked Open without having a config file or ROM file selected, so the application doesn't know what to open.I did exactly what you said, but it still gives me an error. This tool is either broken, or I am just incredibly dumb
For the config file name, go to the folder in CadEditor called settings_raf_world, then choose Settings_RafWorld-1.cs. For the ROM file, navigate to where your RafWorld ROM is. Then click Open.
Squall_FF8 has some great insight here. You should be able to change the level geometry in CadEditor for the Japanese version of the ROM, then paste your modified data back into the US version.
There is also a user named lancuster who has made several config files for CadEditor. Perhaps you could enlist his help, so you can edit the US version directly.