First of all – you’re using the previous version of AxCrypt, which is not actively maintained. That being said, it’s not likely to be a problem with AxCrypt, nor is it likely to be resolved by upgrading to version 2.
As the message says, Access is Denied. This typically means that you do not have the permissions to either read or write to the file in question or to the temporary folder. Check that you can create files and folders in the document directory and %TEMP%\AxCrypt .