Canonman, - What is your OS?
Perhaps you aren't running Dreamweaver as an administrator, and UAC (User Access Control) is stopping you from access the htdocs folder.
If you haven't already done so,
In the start menu right-click the DreamWeaver icon and select 'Properties'.
In the 'Compatibility' tab, near the bottom there is a 'Run this program as an Administrator'
Make sure this is checked.
You will need to click OK ever time you Run Dreamweaver, as this should give you the permission to write to the local web root.
That may be it.
I seem to be running late today!