Sony Vegas Pro 10 Error on Creating a Proxy File for Stream

I am working with the .veg on Vegas Pro 10 and I'm not sure why am I getting a streaming error. It seems to be related to Sony Media Manager but I am also uncertain which file the error is showing. Can someone explain the process on resolving the issue? Thanks a lot!

Vegas Pro 10.0
An error occurred while creating a proxy file for a stream.
The file could not be created.
OK
