Polyline to Raster produces error 999999 when output is GRID format

Discussion created by jgrand on Aug 6, 2012
Latest reply on Apr 6, 2013 by speaslee
I'm simply trying to convert a shapefile to Grid format using the Polyline to Raster tool and I get error 999999 when my output folder is set to a particular drive.  When i change the output to a different drive it works fine.  I assume it's an output folder "corruption" problem but it happens with every folder on the drive except a new folder created at the highest level.  I found a workaround which involves using Polylline to Raster but saving the output in tiff format, then using the Raster To Other Format tool to convert from tiff to Grid format.  This seems to work, but there must be some way to "fix" the folders on this drive so that I can save directly to Grid format. Has anyone figured this out?  This folder "corruption" issue seems to be a pervasive problem in version 10.

I already tried unchecking the read only box in the folder properties but that does nothing and it is checked in the folders that work properly too.