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When issues like this appear for no apparent reason, my first suspicion is always security software - i.e. your security software updated (perhaps even silently) and is now throwing a wrench in the works. Try restarting your computer in Safe Mode (with networking) to see if that solves the problem. If it does, try exempting GSAK.exe and GPSBabel.exe from "real time" or "live" scanning by your security software.
Edited to Add: I just noticed something else - the path to your application data folder is: "C\Program Files (x86)\gsak\Appdata\". It appears that you are using Windows Vista or later (e.g. Win 7, 8) and you have installed the GSAK application data in the Program Files folder (perhaps you restored from a previous installation on a Windows XP computer). Newer versions of Windows do not allow dynamic updating of files in the Program Files folder tree. Uninstall GSAK and reinstall to a different folder (e.g. GSAK8) and see if that solves the problem.

When issues like this appear for no apparent reason, my first suspicion is always security software - i.e. your security software updated (perhaps even silently) and is now throwing a wrench in the works. Try restarting your computer in Safe Mode (with networking) to see if that solves the problem. If it does, try exempting GSAK.exe and GPSBabel.exe from "real time" or "live" scanning by your security software.
Edited to Add: I just noticed something else - the path to your application data folder is: "C\Program Files (x86)\gsak\Appdata\". It appears that you are using Windows Vista or later (e.g. Win 7, 8) and you have installed the GSAK application data in the Program Files folder (perhaps you restored from a previous installation on a Windows XP computer). Newer versions of Windows do not allow dynamic updating of files in the Program Files folder tree. Uninstall GSAK and reinstall to a different folder (e.g. GSAK8) and see if that solves the problem.