Try copying the MDT file to your local hard disk. Set your Inventor project to so that the workspace is the same folder as the MDT
In the translation destination set that to the same folder.
If it works, you may have an issue with network privelidges. If it still doesn't work, you do not have sufficient privelidges on
certain folders on your local machine (basically Change permission on C:\Program Files).
If you log in as administrator does it work?
I have had numerous issues with this, and the saga is ongoing...
I have had similar problems very recently. It got part way through the process and then just locked-up. I found the problem to be my part template. When I used the standard part template it worked. There is nothing wrong with my part template except it has been migrated through several releases.