Ok, so you had no problem running the Example code for servos? You can find the code I am referring to at Files - Examples - Starter Kit - p05_ServoMoodIndicator.
Did you install this version of Arduino in any particular path on your hard drive? It seems like the include files are referenced in a relative path, in which case this might be the issue.
I installed the Arduino software in a folder on root of my C: drive.
Thank you for your reply and any help would be appreciated.