Spoke to early...this is actually happening only on my client and is whenever i try to select any type of file using the Explorer. When i use the explorer on the server it works fine. I have been using the same client and server Windows versions (Windows 7 x64 and Windows 2008 R2 x64 respectively)for quite some time and also visual cron versions. The only thing i can think of is that on my client i have installed SQL 2012 Shared Components, but not on my Visual Cron Server. If this is indeed the problem, i believe it shouldn't be.
BTW: on the latest version you told to use.