From the screen shot I see that you are running version 2.1.1388. Version 2.1.1389 (or later) has some improvements in the error handling and reporting that might help here. I’m not positive, but as always you should always be using the most recent version ;-)
Upgrade and try again, and we’ll see if there’s any difference in behavior.
One possible reason is that the file is read-only, or that you do not have permissions to access it.
Can you send a screen shot of the folder in questionin Windows Explorer as well?
Also can you confirm that I have understood you correctly in that you *can* decrypt it, by right-clicking and selecting “AxCrypt | Decrypt” ? Can you also confirm that you *can* open it in a picture viewer after you have decrypted it?