The preferences > file > VST settings is just a different way to configure the Cakewalk Plug-in Manager tool. I usually just use the tool directly in the Utilities menu. You can add the directory in the preferences or open the plug-in manager tool and click the options button in VST Configuration (that will popup the screen above).
Does BFD show up in X1? I thought you said it did back in your original BFD post.