As we have discussed various things in the comments without success, what might work is to create a new wineprefix and then install and run foobar always from that prefix. That may allow you to continue using foobar without reinstalling wine, as the corrupted settings may be present in the original .wine folder.

Create your wine prefix with:

WINEPREFIX=$HOME/.foobar winecfg

Then you can temporarily export the location to the environment:

export WINEPREFIX=$HOME/.foobar

(see my note below re using export and env)

Then cd to your newly downloaded version of Foobar2000 and run the install:

wine foobar2000_v1.1.17.exe

I had to logout and login before I launched the program, or I experienced some odd errors and heavy disk activity. That was probably my system however.

Now if you have logged out, open terminal and run the export command again and then enter

wine "c:Program filesfoobar2000foobar2000.exe" 

To alter any settings in this new prefix, you can just run

winecfg

as long as the prefix is exported to the environment as above.

Note: I have specified to export the WINEPREFIX environmental variable above; an equally valid method would be to use env, and often using env is very useful as it does not rely on the variable having already been set with export. The WINEPREFIX specified with env is used for that command-line only, whereas using export means that variable becomes the default environmental variable and thus would have to be unset if a different WINEPREFIX was needed to be used.

Some example usage of env:

env WINEPREFIX=$HOME/.special <wine commands>

You will also have to modify the foobar location in the script I recently discussed in my other answer by adding the following, modified for your system, under the shebang at the top of the script:

export WINEPREFIX=$HOME/.foobar

cd /home/mike/.foobar/drive_c/Program Files/foobar2000/

This is definitely one way to get fresh settings without reinstalling wine and removing your .wine folder, and it should make foobar work correctly again, and can be repeated for many different wine programs: see the Wine FAQ.