Your C:\iwtemp directory may have gotten corrupted. Back this up and delete it. Try again.
Ok. Now try pointing the the file manage to another folder on the C: drive . You may create a peer directory to c:\iwtemp for this purpose.
Go to mylocalfiles section and in that screen you will find a option called settings (on the top right side of the container that lists files). Here you may set pointer to the new folder you created.
Ananda,Are you able to reproduce the issue on another machine ?
which browser are you using? Are the browsers on both the machine same
Are you able to import the files on the machine where you are getting the download error.ThanksAkshat Agarwal