Martin,
That is correct. The Winxp machine is 32 bit and the Win 7 machine is 64 bit. I don't remember having this issue with previous versions of CCS on the Win 7 machine but it is possible I never tried to create a new workspace after I was "upgraded" to Win 7.
I saw the message (during the failed update) to zip up the logs and post them but I didn't because I had this same issue on the Win 7 machine a little while back and I ended up having to uninstall 5.3 and do a full install of 5.4. I chose to upgrade the Win 7 machine because, for some reason, 5.3 would not run anymore and I could not upgrade in place to 5.4. I figure I will do the same thing on the Winxp machine. If that doesn't work, I will post the install logs.
Thanks