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Error - 'The specified data folder: 'C:\Program Files\Dynamics' is invalid, incomplete, contains spaces, or write protected. Please type a full path with drive letter; for example 'C:\APPS'.' occurs when installing Dynamics 7.0 for Pervasive.SQL 2000i. Resolution
The GPREADME.CHM indicates that the path for a Pervasive.SQL 2000i install will default to C:\Dynamics instead of C:\Program Files\Dynamics. This is incorrect. The path still defaults to C:\Program Files\Dynamics, however it must be changed to C:\Dynamics (or some other path that does not have a space in the full path) when you get to the 'Select Dynamics Data Components' window where this error is encountered.
Use the default path C:\Program Files\Dynamics for the two preceeding windows: