WDSc 7.0.0.8 stuck in hard loop at startup

A quick search of the web and Midrange has not produced an answer.

My coworker is just starting with WDSc. After I installed version 7.0
and all upgrades to her computer, twice she has had the program go
into a loop when starting. It displays the splash screen, and then
brings up the Remote Systems Explorer view. After it does that it
says "Connecting SYSTEMNAME" at the bottom of the window int the
status area. The activity meter shows at the bottom also but moves
very slowly. Clicking on the red square to cancel the operation does
nothing. She has a dual core PC, and one of the cores is pegged
solid.

I got around this by deleting the files in the
C:\Workspace\.metadata\.plugins\com.ibm.etools.iseries.core\cache
directory. Once this was removed, then WDSc starts as expected. Now
when she tries to open a source member in the LPEX editor she gets the
message " Operation error. File system input or output Error" The
detail for this error is " Message reported from file system:
Resource/RemoteSystemsTempFiles is not open."

Has anyone seen the first error and what is She doing that would cause
WDSC to go into GURU mode?

How do we get back the ability to open a source member in the LPEX editor?

Is it time to call IBM for support?

Thanks!

Jim