I was having this same issue running WIN7 x64, cygwin1.dll version 1.7.9, and 
no 
Security Essentials or any other a/v software.

This is how I fixed the issue:

I went into my cygwin installation folder (C:\cygwin\bin), right clicked on 
"sh.exe", selected "Properties", selected the "Compatibility" tab, and checked 
"Run this program as an administrator".

I did the same thing for "bash.exe".

Now it works beautifully without any error messages.

Hope this helps.

PS On "sh.exe" I also have it running in compatibility mode for Win XP SP2 but 
I 
don't think it is necessary.


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