D3, Remote data module & type.lib

If we try to compile any server type program (our own or D3's demo
examples like the one with a remote data module) we get a linker
Error(0): RLINK32: Error opening file "c:\etc\server.tlb"

We also find it impossible to save the project - when the system
attempts to save the type tilbrary - the uppermost item in the project
manager dialog we get a "parameter incorrect" style error