Oh my freaking god, Shaz.
That's not my problem, but I think you just clued me in to what's wrong. It's most likely because my server directory is actually on a network drive. Oops.
I'm going to move everything back to a local drive and give that a shot. I'm sure that's the problem (Famous last words?).
Thanks for your follow up post! I'll post my findings... I hope this is it

It's been driving me craaaazy.... then that stupid computer crashed. Ugh.