http://bugs.winehq.org/show_bug.cgi?id=15842
--- Comment #2 from linux fan linuxscratch@gmail.com 2008-10-29 16:48:10 --- (In reply to comment #1)
It sounds like your wine prefix is broken. Does ~/.wine/drive_c exist? Does this still happen if you move away ~/.wine ?
~/.wine/drive_c exists! This still happens in 1.1.7 if I rm -r ~/.wine