I've spent a few days studying the issue and several hours searching for solutions here. Forgive me if the problem has already been addressed and I somehow failed to catch the post.
A good ways in the build halts with this...
IF - File does not exist: [C:\LiveBuild\"C:\LiveBuild\I386\txtsetup.sif"] evaluated string: [If,NotExistFile,%TargetDir%\#1,FileCreateBlank,%TargetDir%\#1] FileCreateBlank - Failed to create a new file: [C:\LiveBuild\"C:\LiveBuild\I386\txtsetup.sif"] : The filename, directory name, or volume label syntax is incorrect. Halt
My target build directory is "C:\LiveBuild\". Notice the nested references to it in the error.
Any clues? Link to log is here