Siebel fails with error when trying to run BI Publisher 10.1.3.4.2

 Problem Summary---------------------------------------------------
Siebel fails with error when trying to run BI Publisher 10.1.3.4.2

Problem Description
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When running reports after upgrading from 8.1.1.7 to 8.1.1.10, Siebel fails with error. It used to work in 8.1.1.7

ObjMgrBusServiceLog Error 1 0000000f51580934:0 2013-03-31 22:22:41 (filetransport.cpp (356)) SBL-EAI-50228: File could not be created as the directory specified for the file creation is not valid.
ObjMgrBusServiceLog Error 1 0000000f51580934:0 2013-03-31 22:22:41 (xmlpadaptersvc.cpp (2287)) SBL-EAI-50228: File could not be created as the directory specified for the file creation is not valid.
XMLPReportLog XMLPReportError 1 0000000f51580934:0 2013-03-31 22:22:41 Error in generating Report Output file \Siebel81SIA\siebsrvr\xmlp\reports\Customer Invoice1-75QRZY.PDF in the XMLP Engine