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I found an 'undefined' entry in the 'Layout 1.xml' file. After changing this to 'None', your project opens without the error.
If you want to try this yourself, open 'KED22 error\GAME FILES caproj\Layouts\Layout1.xml' in an editor (I use Ultraedit, but Notepad will do) and search for 'Undefined'. Change this to '(none)' and save (no quotes).
It will look like below:
<properties>
<initial-visibility>Visible</initial-visibility>
<effect>(none)</effect>
<auto-mirrorflip>undefined</auto-mirrorflip>
</properties>
As you can see, the node for <auto-mirrorflip> is undefined.
If you don't want to go through all this, just look at the properties for your canon (Sprite3 on Layer 2) - that's the one with the 'Undefined' entry.
Let me know how you get on.
zen