Unable to Create New Color Palette

[rfelkel410583]

Unable to Create New Color Palette
When opening an existing drawing I get this message on one computer( ACAD 2004) at the office "Unable to Create New Color Palette", and then it gives me a fatal error and shuts down the program.... any suggestions? I have uninstalled and reloaded 3 times. The only work around sorta is to insert the drawing I'm trying to open into the drawing1 as a block then explode the drawing and saveas to the job folder. Just trying to open a drawing and I get this message. I tried the repair first, then the uninstall from the disk, still the issue persist. This is a new computer (less than 2 months old). I have not found any issues on any other programs running this graphics card, but to be safe I tried to update the card driver and it confirmed that it was up to date. ACAD ran fine for close to two months then the message started. I tried a system restore back to date before the last MS Windows 7 update but I still get this error. Any suggestions would be greatly appreciated.

[Norton_cad]

In a blank new drawing open the options dialog, and verify your path to the materials library. If missing fix it. If okay try inserting the problem file as an exploaded block and saveas a update.

[rfelkel410583]

I have ACAD 2004 I can not find the material library.

[Norton_cad]

Please provide a screen shot of your options dialog box.