Problem: Error "The Working Directory location can not have a space in the path name.
Please specify a new location"

When you use the spatial analyst various temporary files are generated in the construction of some output datasets. You might recall that I've said never to have spaces in the names of files or directories for any ArcGIS data. Well by default the working directory for Spatial Analyst is a "home" directory for your username that does have spaces in it. If you get this error message:

"The Working Directory location can not have a space in the path name.
Please specify a new location"

then do this:

From the Spatial Analyst menu select Options. Under the General tab enter the following for "Working directory": C:\TEMP

This is a directory that all users should have write access to and so should allow ArcGIS to create the temporary files needed for some Spatial Analyst operations.