> 1. Base Path: to where the bookmarks.html file is
> located.
Base Path is where you want all your mirrors to be stored.
You need to specify either <file://c:/path/to/bookmarks.html>
or drag and drop the file and use test
or copy/paste the urls into the url box and mirror.

> 4. I've set the Options: Limits: Max mirror depth:
> 1, and Max external depth: 1.  

> mirror complete in 0 seconds : 1 links scanned, 1
> files written (197166 bytes overall) [0 bytes

depth one=your bookmarks file so you get nothing else
set depth=2 external=1