Since I appear to talking to myself I might as well finish this conversation.
It appears that OrCAD has claimed the user variable 'home' and given it the value of c:\SPB_Data.
The quick fix, delete the OrCAD HOME variable value from the user's environment variable. The Virtual Machine now works and software development can continue as usual. (as a side note, mplayer also seems to be throwing a config file in the SPB_data folder, so it appears other programs are also affected by the OrCAD install.)
The long term fix. Run OrCAD on a junky PC by itself - and send a letter home saying OrCAD doesn't like to play well with others.