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Access to the path 'C:\Program Files\Fiddler2\Scripts\watcher_exceptions.txt' is denied.
The watcher_exceptions.txt file cannot be created on Vista or Windows 7 systems if Watcher was installed to the 'Program Files' directory. This directory requires administrative permissions to write to. An unhandled exception will occur:
at System.IO.StreamWriter.CreateFile(String path, Boolean append)
Since this file is low priority, the solution is to catch this exception and avoid trying to create the file.