No other DAOS messages prior to this one.
I created the c:\Domino\DAOS folder
If I leave the default of DAOS in the DAOS Base Path field I still get the same error.
I prefer to have the DAOS Base on the c drive.
My Domino\data folder resides on a different volume.
Thanks for your response.
I just got off the phone with IBM support and it looks like I'm the first person to ever have this problem. They suggest that I bring down my sever, run offline mantainance, and try again.
Not really sure how that will help domino create the DAOS catalog but I think it buys the support rep some time to figure out what is really going on.