I get
Code:
'ebook-convert' is not recognized as an internal or external command,
operable program or batch file.
which is the standard error message for a file that is not on the search path. Add the Calibre Install folder to the search path and it all works fine.
I can use the Advanced option to install calibre where I want, so it is not a huge issue.
The biggest concern is that the command line tools stopped working. Have you tested this on XP - it always possible that Vista or Windows 7 work OK as I have not tried them.