Repository Viewing inhibited (local workspace error)

When opening LifeCycle Workbench I encounter the following Exception:

"An error was encountered while trying to reference the local workspace. Repository Viewing inhibited."

Another error that may (or may not) be related occurs when I attempt to drag a pdf resource from Workbench to the desktop (or any folder).

DOWNLOAD FAILURE

"Resource not downloaded due to a failure. Could be permissions, or network connection failure."

This has just started happening.
I have admin rights to my machine.
Nobody else on the temp is having this issue.

Any and all assistance is appreciated.

Also posted under Download failure topic