@sheldon_es: I tried the book you sent me and had no errors with either a conversion or using the extended driver. It feels like something external interfering, but, I have no idea what. The obvious culprit would be anti-virus or anti-malware.
The only other thing I can think of is to check the path where the files are and see what is there. Calibre should create a new temporary directory when you start it. And the conversion will use another. They should disappear when finished, but, I'm not sure what happens when the conversion fails like this. Watching the temporary directory as the conversion happens might tell you something.
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