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Autopilot fails with exception

When running Autopilot as follows…

PS1> &$autopilot /M "UPDATE" /I $report1 /O $report2 /L log.txt
…Excel comes up and the report runs normally. However, $report2 doesn't get written, and log.txt says:

Creating the file <$report2> failed with the following message: Exception of HRESULT: 0x800A03EC

Of course I do have write permissions on $report2. Changing the location of $report2 to my home directory (and then copying the result) solves the problem , but I still find this a bit annoying. What is going wrong here? What permissions does one need on a file (or directory) specified by the /O switch?

(Windows Server 2003, Jet Reports 2010)

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