Calibre failed to redirect stdout/stderr

I have been using for quite some time. I went to use it today and having problems.

I get the error
Failed to redirect stdout/stderr to NUL. This indicates a corrupt Windows install
You should contact Microsoft for assistance and/or follow the steps described here:
Http://bytes.com/topic/net/answere/264804-compile-error-null-device-missing
No such file or directory (Error Code:2)

I Uninstalled Calibre. Downloaded latest (2.26). Installed. Ran, same problem.

I have Windows 7 with service pack 1. I downloaded 64 bit version of Calibre

I'm lost