Just downloading new version and I get this! What to do now?

To clarify, this happened when I was installing the new version.

Just read others having the same problem. Am updating my windows to rectify the problem. Fingers crossed.

Error 0x3 translates to "path not found". One of your DLLs' initialization routines is looking for a folder that does not exist. Hope that's a clue you can use.
 
Oh, wait...I re-read your OP and it sounds like this is occurring during the download, not during installation or VST scan. In that case, the issue is with the downloader. Something you should take up with CW support.

see http://forum.cakewalk.com/FindPost/3396900