By default the windows installer installs STS to \Program Files\springsource which I guess is too long for some of the files (i've seen errors when extracting manually about paths being too long).
If you create a new bundle and add it to the default dm server, it doesn't actually get deployed... You can add/remove it all you want but it has no effect.
If I install it to just \springsource, it works just fine...


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