Michael,This has been popping up a bit lately. We are changing the way this works in the next update as this seems to be more of an issue on Windows 7 and some later service packs on other OS's lately. There was some relatively long discussions on another thread the other day about getting around this. Some people mentioned that it had to do with a long machine name while others mentioned having the issue when a dash was in the computer name. In truth, we have had a hard time reproducing this, but know how to ultimately prevent the error.
If none of these suggestions get you going, let me know and I will give you a link to a beta build that has this workaround eliminated from the installer.