For some reason this was a permissions issue. I have Zorro directory in C:/users/user/Zorro. I verified it with Process Monitor and was seeing a "SHARING VIOLATION" when desired access was write.
Kind of wierd, I have not ran into this problem in the past and I have ran out of the same directory. Fixed by running Zorro as administrator.
Re: Cannot write a fac file
[Re: jbhunter]
#479784 04/26/2009:4904/26/2009:49
Sometimes have the same caused by lag of the cloud drive and also by the caching of the ssd. If that is the case, stopping all Zorro instances and open again normally helps.