Same problem, I changed my folder to read/write, and it didn't do anything. I've also looked at about every thread on every forum google can find about this error and no one has found a fix other than using the Turbine Download Manager. Which I no longer have. A fix would be great.
Edit:
Make sure you have these files in your DDO folder.
client_Anim
client_cell_1
client_gamelogic
client_general
client_local_enlgish
Client_map1
client_mesh
client_surface
Client_sound.dat
I found I'm missing client_surface so I need to reinstall.. Will post if it works.