Can't start artwork daemon on Windows

When trying to start the Flexlm license manager on Windows, the artwork.exe daemon remains down and you get the following error message.

#Flexible License Manager status on Tue 11/11/2003 09:20

[Detecting lmgrd processes...]
License server status: 1501@hera
    License file(s) on hera: C:\artwork\license.dat:

      hera: license server UP (MASTER) v8.1

Vendor daemon status (on hera):

   artwork: The desired vendor daemon is down. (-97,121)

We found that FLEXlm always creates a lock file called "C:\flexlm\artwork" when you start our vendor daemon, even if your license server is in a different directory. If you create a directory called C:\flexlm\artwork , the server would start up and try to create the lock file, but it couldn't because there is already a directory with that name. The solution is to rename the directory, and restart the server