I received an error 'Could not create output file'.

This means that Prism doesn't have write access to the output folder. This is most likely caused by Windows Vista's User Account Control feature. The easiest solution is to create a new folder yourself, then tell Prism to put the file in the newly created folder. You can do this in Options.
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Another solution if you are running Vista is to right click the Prism program icon, then select, 'run as administrator'. This will cause the program to run as an administrator and have right access to most places (Note: If the user is restricted, you will need to put in the admin password for the program to run that way. If this happens it will confirm that it is a permission error due to a restricted account). You can then select an output folder to write to (Desktop for example).

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