Question: I installed Phonegap Desktop on my Win 7 laptop.

Now I open it and click on "New project".
After selecting "Hello world" template I choose a directory on my local drive and fill in a name.

When I click on Create button, after some seconds, it show an error message "Project Create failed with code 1".

Any idea?

With thanks,
Matt

Answer: 
run phonegap as an administrator and it will work
today I started up again investigating on my old phonegap project so I updated the Phonegap Desktop application with the new version present on-line.... and magically it started working fine.