Resolution:
Check that the user has access to create files in %TEMP% . If the user unable to write a new file to this directory, the error will be displayed.

Ensure User Account Controls (UAC) is not preventing the creation of the file.  If UAC is preventing the action from completing, run the applet from a command prompt with elevated privileges (%SWDIR%\bin\swentobjsvcfg.exe), or in the Control Panel, press Shift - Right mouse click on the applet, and select "Run as Administrator."