If this is exactly how it looks in you Target field, then I think I know what's wrong. There are spaces in the last path, but the path is not in qoutes, so it actually looks for "C:\Program" rather than for full path. It should look like this:
"C:\Program Files (x86)\Mount&Blade Warband\Modules\The Deluge 0.5\WSE\WSELoader.exe" -m "The Deluge 0.5" -p "C:\Program Files (x86)\Mount&Blade Warband\mb_warband.exe"