before we go too far let me ask you this; i have the system TEMP variables pointing to the root of a partition (d:\) rather than a directory (d:\temp) and i'm wondering if this is the problem? i'm asking because i see in options > custom files... you cannot add the root of a drive/partition
this is, in fact, the problem. CC doesn't like it when you point the TEMP directory to the root of a drive (as from computer > properties > advances > system vars).
i changed the directory (both user and system) from D:\ to D:\TEMP and all is well
sorry for the trouble