When running a native compilation of gVim under Win7 I have the following in my vimrc:
if has ("win32")
let $TMP="C:/tmp"
setlocal equalprg=tidy\ --output-xhtml\ y\ -utf8\ --wrap-attributes\ 1\ --vertical-space\ 1\ --indent\ auto\ --wrap\ 0\ --show-body-only\ auto\ --preserve-entities\ 1\ -q\ -f\ shellpipe=2>
endif
This should create a temp file. However, after running the command, I see:
shell returned 1
E485: Can't read file C:\tmp\VIoC935.tmp
The common recommendation for native windows E485 errors is to set the tmp variable, which I have, as you can see from my vimrc snippet. If I remove the let statement, I get a similar result:
shell returned 1
E485: Can't read file C:\Users\ksk\AppData\Local\Temp\VIfFA01.tmp
In both cases; both directories exist and gVim can write a file to those locations, i.e.,
:w C:\Users\ksk\AppData\Local\Temp\VIfFA01.tmp
in the current buffer will write this file without error.
Interestingly, while writing this, I found that if I create a new buffer, and delete the original buffer, the equalprg function runs without error (with and without the "let" statement in vimrc)