Well, I was able to get the project to compile correctly by creating a new workspace folder on c:\ and copying the downloaded AN to that folder, so it does appear to be an issue with spaces in the path.
However, I have been able to create bare metal and MQX projects in folders under My Documents etc, and not get this error.
Is there a setting in the IDE for handling spaces in the path, or is it just that the original AN project was created on a path without them?
Anyway, thanks for pointing me in the right direction Tom.