photoscreensaver.scr error

first time i have seen this error on win7 and ive done quite a few 7 installs. when the screensaver is set for clients photos i get a message - there is no disk in the drive please insert a disk in drive \device\harddisk1\dr1

when i research it mentions the drive letter assignments in disk management but those all look the way they should look. wish i could attach a file to show what disk management looks like but c is the op system d is the dvd burner and a few others are for the smart media reader.

am confused cuz like i said this isnt the first win7 ive done and i always use the photo option for pictures for my clients. this is a first.

any thoughts ???

 

guess this one has people stumped like i am. have even created a new photo folder and copied the pics there and changed the settings for the screensaver to the new location and i still get the error. like i said i have done a number of win7 setups and this is the first one to give this error.