[AUCTeX] Problem when compiling a file with an error

[José Carlos Santos]

Hi all,

Some time ago (right after having upgraded Emacs to version 23.1, I 
think) I started to have a problem when compiling LaTeX with errors.
Imagine that I have a file called test.tex in a directory called temp.
The contents of the file are

\documentclass{article}
\begin{document}
\abc
\end{document}

If I compile it I get, at the bottom line of Emacs:

LaTeX errors in `*~/temp/test output*'. Use C-c ` to display.

So far so good. But if I actually do C-c `, what happens is this: I get 
for a short period of time the message:

Use M-x make-directory RET RET to create the directory and its parents

at the bottom line of Emacs. Right after, I get:

Master file: (default this file) ~/temp/"c:Documents and Settings/C/"

What can be causing this?

A note: I work under Windows XP.

Best regards,

Jose Carlos Santos