I have not heard this before. I suspect it sounds like there is a real problem writing permissions from the directory it is installed to. That would explain most of your problems.
You can delete the settings file and start over. I don't think that is the problem.
If you are installed on a remote drive with limited permissions, that sounds like it could cause this.
Please review the environment to see if this may be the case.
If that is not the problem, try setting the start to Windows 32 compatibility for XP or earlier.