Rob,
Did you follow the exact procedure at the Getting Started guide (check here)? The project for the C674x GPIO LED builds fine for me:
I am using CCSv5.5 and the same Starterware as you. Keep in mind that you cannot select "Copy projects to workspace", as it will fail.
I don't have PDK installed, but a similar procedure is shown at this link.
By the way, I am surprised to see a Linux path in what it seems a Windows install - are you using Wine in Linux? Or did you import a project that is in fact hosted in a remote Linux machine?
Hope this helps,
Rafael