Maybe one solution once you have run the FTM 2005 starter edition and converted your FTM version 4 file and checked that the media is there is to open the file in FTM 2012 for Windows and convert it to .ftm format then use the File Migration Utility that ships with your FTM2 CD to convert it again for FTMM2

Bit of a scenic route but should work OK

I haven't heard of the problem of FTMM2 not converting a .FTW from the SE correctly

John D