[Wine] wine cannot find L "c:/windows/system32/plugplay.exe

[bflojoe6]

I'm running Wine1.2.2 on Ubuntu 10.04 (Lucid). In my file manager, I can get to the /.wine/drive_c folder, so I know it exists in my file system. However, when I open the Wine Configuration window (either via apps/wine/configuration or via terminal (winecfg), on the Drives tab it shows 
   C:      ../drive_c
   D:      /media UDISK
(and a few other drives).

However, the C drive 'browse' button is greyed out, so I cannot link Wine to this drive, which in fact does appear in my file system

When I try to bring up the wine configure page or the ../drive_c file in terminal I get the message: wine cannot find L "C/windows/system/32/plugplay.exe" 

What is wrong and how can I fix this problem? Thanks.