I tried your suggestion but it doesn't help, I'm still getting the same message.
I'm working locally with the CuteSoft_Client/CuteEditor folders in the Inetpub/wwwroot directory. I have ammended the filesPath property, I don't know if that has a bearing on the problem.
Does the ASP.NET machine account need full permissions on the %windir%/TEMP folder? I'm trying that but having some difficulty setting it up. Can I change the folder.
Is it simply a permissions problem or something else?