are there any files in there at all (a .bak file, specifically) ?
Wierd.. now its showing a file with the .bak extension
@ Karajorma
Yes, now all of a sudden Fred can load the test mission.
Seems, somehow, someway I had multiple copies of freespace on the PC, I thought I had sorted it all out, but apprently there was another copy of fred that wasnt uninstalled.
Deleted the other version, then started having that issue with fred 3.6.9 showing that white blocth.
For sh*ts and giggles I deleted that as well, now all I have is just FRED2 (aside from the game of course) which when I loaded freespace up, the test fight I made showed up.

So I'm assuming I should try another install? I'm glad it works and all but rather have the fred2_open as I would think that is the most up to date version.
Then again maybe I should just be happy its working now and leave it be.