http://isilox.com/support/manual/ixl/ixl.htm
Make sure you are using "Destination/Files/Path" and not one of the other options (i.e., "HotSync" or "ActiveSync"). While I can't recall having problems with special characters (such as spaces), you may try a simpler path for testing purposes. A simple "file.pdb" should create a file named file.pdb in the current directory (with no relation to the path of the ixl file).
If you are still having problems, try using the "-vv" option to get more verbose output. That information may be able to give you additional information.