>It worked when I went into File Location under tool\option and pointed the "Temporary File" to some
>other TEMP folder other then c:\temp.

Oh, I know what your problem was, then: the system attribute has been set on your c:\temp directory.

Open a Windows Command Prompt (DOS window) and type "ATTRIB c:\temp". I'll bet it shows an S. To turn this off, do "ATTRIB -S c:\temp".