Got it to work from Nautilus

I edited the .desktop in /usr/share/applications
and corrected the path to /home/derek (replaced the capitals)

I changed the properties of the file , and in permissions switched off the executable flag and open with text editor.

In Nautilus : Preferences -> Behavior -> Executable Text Files to Ask what to do.

Stopped Nautilus , and rebooted Ubuntu , started Nautilus

In Nautilus : Preferences -> Behavior -> Executable Text Files to Run executable.
I changed the properties of the file , and switched ON the executable flag of SweetHome3D and open with Run software.

and it starts and i could append it to favorites (dock)