joomla: Path is not a folder/Warning! Failed to move file

[mardulia]

I'm working on developing a joomla site locally with XAMPP. I see this message in the template manager: Path is not a folder, and this message when I try to install an extension: Warning! Failed to move file. I was able to move a template directory into my dev project manually, but it's not really working right either- the css I'm writing doesn't display (but that might not be related- who knows ) I get a feeling that something is not set up right here. Can someone help?

Thanks! A.

PS It's bitter cold here- hope you're warm.

[mardulia]

Is there no one out there who can help me with this?