There is a file called PowerPCB.ini which stores your default settings for number of directory locations. The error indicates that the PowerPCB.ini file contains an incorrect or invalid path.
Browse to the PowerPCB.ini file location which can be found in your "C:\MentorGraphics\<version>PADS\SDD_HOME\Programs" folder.
Open this file using Window's Notepad, correct the path shown for the entry in the error message such as 'LibDir'. Save the file and re-open PADS Layout.
SystemDir should be pointing to: C:\MentorGraphics\<version>PADS\SDD_HOME\Programs
UserDir should be pointing to: C:\MentorGraphics\<version>PADS\SDD_HOME\Settings
FileDir is typically set to: C:\PADS Projects
LibDir is typically set to: C:\MentorGraphics\<version>PADS\SDD_HOME\Libraries
ReuseDir is typically set to: C:\PADS Projects\Reuse
VBScriptDir is typically set to: C:\PADS Projects\Samples\Scripts\<product name>
Note: Replace the entries within the less than/greater than signs < > with actual version or product names.
It is best to copy the path from the address bar of Windows Explorer to ensure there are no mistakes.
Thanks for your reply, its working fine now ......