Microsoft has confirmed a problem that hundreds of users have reported with downloading Windows 7, according to its support forum.

The company is currently investigating the reports, but has not yet come up with a solution.

"For those that have purchased Windows 7 from Digital River and receive the error 'We are unable to create or save new files in the folder in which this application was downloaded' when going through the 'Unloading the Box' [step]...Microsoft and Digital River are aware of the issue and it's being investigated," a Microsoft support engineer said in a message posted yesterday.

"We will post back to this thread when we have additional updates," added the engineer, an 11-year veteran of the company identified only as "Michael."

Minneapolis, Minn.-based Digital River powers the downloading of Microsoft's $29.99 Windows 7 upgrade offer to students. Digital River handled the electronic purchasing and downloading for Windows Vista and Office 2007 in early 2007.

Full story: Computerworld