Jambunathan K <kjambunat...@gmail.com> writes:

>         (setq temporary-file-directory "~/tmp/")

You can see how it is set on my Windows XP machine. Basically it some
directory under my "My Documents" path. 

I never had any problems with this setup.

,----[ C-h v temporary-file-directory RET ]
| temporary-file-directory is a variable defined in `C source code'.
| Its value is "~/tmp/"
| Original value was 
| "c:/DOCUME~1/KJAMBU~1/LOCALS~1/Temp/"
| Documentation:
| The directory for writing temporary files.
| You can customize this variable.
| [back]

#+begin_src emacs-lisp
  (expand-file-name "~/tmp")

: c:/Documents and Settings/kjambunathan/My Documents/My Data/tmp

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