This occurs because MATLAB is unable to generate the preferences directory needed to start MATLAB. You will need to manually create the preferences folder for the MATLAB version:
The directory is:
C:\Users\<user name>\AppData\Roaming\MathWorks\MATLAB\<version>
Example: C:\Users\jdoe\AppData\Roaming\MathWorks\MATLAB\R2007a
Once this folder has been created, start MATLAB once again, as it should now open successfully.
