When first running ArchiCAD, it will try to create folders under your user folder (Documents and Settings/USERNAME/) If privileges not allow ArchiCAD to create these folders, then that is a possible cause for this error. Also, some paranoid virus checkers and data safety applications can interfere with this process.
Try to turn off any of such applications before first running ArchiCAD. You can also try what happens if you create a new user on your computer - can you run ArchiCAD in a new user environment?
Gergely Kmethy
VP, Customer Success, Graphisoft