If your command prompt shows "C:\windows/system32>" as you state, I would guess (and this is only a guess, given the information you have provided) that you are trying to create a file in the C:/windows/system32 directory. I would think (hope?) that this would be off limits to mortal users and require a privileged account to modify this directory.

I would first find out why your command prompt is starting you in the system directory instead of in your home directory. I would not be surprised if your original problem would then just 'go away'.