I had the same error and after looking at this post I was able to quickly fix it. To give my dues, I will explain my situation and resolve for those who are still struggling.
The reason why the error was occurring for me was because I had moved some "user folders" to other drives and then I used Computer Mnagement in Administrative Tools (in Control Panel) to change the letters of my drives (really just partitions). ... This caused some of the registry information for my user directories to point to the wrong drive letters. So for example, the registry claimed that the "My Documents" folder was on F: though (after I changed the partition letters around) it was really on E:.
To remedy the situation I simply opened up the registry editor (Run: regedit) and searched for "F:" the letter of the drive that I used to have "My Documents" on but was no longer on (because the same partition was now E: ), and I changed the key information to use the correct drive letters.
Here are the folders that hold the keys I changed (I think):
My Computer\HKEY_CURRENT_USER\Software\Microsoft\CurrentVersion\Explorer\Shell Folders
My Computer\HKEY_CURRENT_USER\Software\Microsoft\CurrentVersion\Explorer\User Shell Folders
Another folder that MIGHT have keys that will cause this error:
My Computer\HKEY_CURRENT_USER\Software\Microsoft\CurrentVersion\Explorer\User Shell Folders\New
So take a look at these keys and make sure that they are set correctly and good luck.
