Firstly there really was no Ver.1 from what I could gather from my researching. 

The X-Terminator Ver.2 was released in Japan by GameTech (red box) and in Europe/USA by UFO Company (box with XT written in green), but with GameTech manual. The manual is always in Japanese but some the box of the 2nd version is in English and some other languages. 

By the way the X-Terminator Ver.2 was just a universal adapter cart +memory backup. Whereas the X-Terminator Ver.3 was like an Action Replay cart but more powerful and you can search your own codes! with the included handheld code finder.

Multiple revisions were made (5 or more), each time with codes for different games or new features added.

So in nutshell the X-Terminator Ver.2 and the X-Terminator Ver.3 were completely different hardware/software. Do not be confused and pay dearly for the Ver.2 :)

1. Plug in X-Terminator cartridge, then power on the Saturn
 2. From main menu, select "ノーマルゲーム" (normal game).
 3. Select "ダイレクトセーブ無" (disable direct save), then start game.
* When extra RAM is used, other extra features can't be used. Also, extra RAM is limited to 1MB.

[note] 3.01 version had the 1 MB RAM capability and this one (3.92) has both 1 & 4 MB when there is no CD-R in the console you can use the DirectSave feature.