Photoshop file error -43 on "Edit in Photoshop"

Hi,
I'm trying to create a simple menu using an Encore library menu a starting point. When I click the Edit in Photoshop button, I get the above error. Below are the steps to recreate the error. This youtube video also shows the steps.
Create a new project.
Drag PAL_blank menu WIDE from the library to the project window.
Drag Nifty Fifties button from library to the menu.
Click the Edit in Photoshop button.
Encore pops up an error box containing the error message "Photoshop File Error -43"
Photoshop CS5 and Encore CS5. Windows 7 Professional 64 bit.

Also CS5, Win7 64 bit.
I do not get the error.
Slight variation on your steps: I create a new project, set as PAL.
The menu list does not show pal or ntsc, just Blank Menu Wide, but the menu name once in is PAL_Blank Menu WIDE.
I don't think there is any choice on those points, and don't believe it has anything to do with the error.
Its a file not found error. Makes me wonder about permissions. Try starting Encore as "run as administrator."

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