Cannot save one or more files in the book (FM 8)

This has me puzzled!

I have the latest FM 8 (p277) installed on a desktop and laptop (both systems have plenty of RAM, 4GB, and available disk space). I have a 13 chapter book with TOC and Index on the desktop system which is running Vista Ultimate. I can build / update the book and even print to PDF (given the kludge steps that Adobe suggests). Works just fine!

I copy the same book folder and subfolder "tree structure" to the laptop also running FM 8, Vista Home Premium. When I build / update the book I get the following:
:Cannot save one or more files in the book" message... And if I re-run the update, all of a sudden the TOC document pops up in a FM window and I get a different set of chapter documents that has some sort of permissions or numbering issue. This has me really baffled!

The files are in a different folder (Ok, but there are no absolute paths -- all dependent graphic files are in subfolders to the document folder). The fonts loaded are the same. I can manually open and save each file with no issues. If I try to print to a PDF, it fails right away (probably because of the other issue). Anyways, FM 8 doesn't crash -- the book update mechanism just fails at different places. The documents do cross link to each other and each chapter does reference (link) to graphics in subfolders and I am fairly certain that there are no hidden files that contain additional metadata.

To play it safe, I even disabled AVG Freeware 8.1 antispyware (used on both systems).

HELP! (I hope I made this understandable.)