Couple of things you could try...
a) Please check you Path variable does not exceed 2048 - see http://support.microsoft.com/kb/2685893
b) If you had this problem after running installer (other than Cadence installer) - you may want to reboot your machine and check if problem goes away. Some installers incorrectly change the windows Path to non-expandable which causes issues as CDSROOT variable stops expanding in Path variable. Windows OS corrects this error on reboot automatically.
One way to check if the problems are being caused from above issues is to open a command window (cmd.exe), run capture.exe from it and see if you are able to invoke the tool.