I think the file permission error has to do with Vista user account permissions. You're probably logged on as a user that doesn't have permission to modify files in the root c:\ directory. Try specifying a different location to store the file that you have access to. The audio issue may be related. If you're trying to store the audio files in a directory that you don't have write permissions to, it could cause issues. You could try moving the whole program directory to somewhere that you know you have read/write permissions (like My Documents or the Desktop) and see if it works.
Andy
Andy