Problems writing to applicationStorageDirectory on Windows 7

Hi,

I am working on an Air application and want to write some files to the applicationStorageDirectory. 

Using Adobe's own ncode or any variation thereof:

var prefsFile:File = File.applicationStorageDirectory;

prefsFile = prefsFile.resolvePath("preferences.xml");

Throws the error:

Error: Error #3002: File or directory exists.

at flash.filesystem::File/createDirectory()

at flash.filesystem::File$/get applicationStorageDirectory()

at browse_fla::MainTimeline/frame1()[browse_fla.MainTimeline::frame1:8]

at runtime::ContentPlayer/loadInitialContent()

at runtime::ContentPlayer/playRawContent()

at runtime::ContentPlayer/playContent()

at runtime::AppRunner/run()

at ADLAppEntry/run()

at global/runtime::ADLEntry()

Extended desktop is set in the supported profiles. 

Also if I use another directory such as the documentsDirectory there is no issue. But the applicationStorageDirectory is supposed to be the one location that we can reliably use.

I would be grateful for any information.

Best regards,

Chris McLaughlin