LAS dataset to Raster issues

[EllaKasten]

I am working with downloaded USGS/VGIN LIDAR which I can convert to LAS and build a LAS dataset from; however, I can not convert to Raster. All other processes are working (I can create a scene, add contour, identify outliers, etc...) but LAS dataset to Raster gives me this error:

Any ideas why this is not working? 

[DanielMichel]

Saving the output to a different location (such as the C: drive, assuming you are currently saving elsewhere) sometimes remedies that error.

[amann]

Do you need to write the output file to a folder or can the output be set to the project geodatabase? If you need to write to a folder, what file extension are you using?

[EllaKasten]

I have found that if I go to properties --> LAS Filter for the LAS dataset and check Withheld and Overlap I can create Rasters with no problems. Does this change anything in my output Raster? Is this a good fix?