..Silkypix is made by The Devil. Burn it.
I gave up with it long ago when I caught it telling big lies. Images that looked good in the Silkypix RAW converter were crap when saved as JPEG's. I now use CS5 although I suppose almost anything would be better than Silky...
I suppose your options are to use the bundled Panny software, buy something else or use a free package like Rawtherapee which will open my G1 and GF1 RAW files. Another opton could be to convert to DNG if there's a problem opening the G1 files with your software of choice.
If you must use The Devils software...
Open Silkypix.
Go to File and select Open File. Work your way to the folder containing the files you want to process.
Select the file. Work on it to your hearts content. Once you're done go to...
Development. Select what you want to save it as and save it.
Make cup of tea.
You might like the latest version of Elements. Have a look at the Adobe site, you can download trial versions for free and give them a try before you buy. Elements will be a hell of a lot cheaper than Lightroom or CS5 or whatever the latest version number is.
I tried Elements and I thought that it was OK but included too many auto fixes and not enough manual control.
PS. Don't forget that converting to DNG might enable you to use the software you want. DNG converter is free, Google and you shall find.