Windows 4.0.0 error Path Ubuntu One should be a bytes sequence

Windows 7 user with U1 client 4.0.0 gets the following error which prevents the client from working:

2013-01-02 19:21:43,436 - ubuntuone.SyncDaemon.tritcask - DEBUG - lookingup data files
2013-01-02 19:21:43,437 - ubuntuone.SyncDaemon.tritcask - INFO - found 1 data files, 0 dead and 0 broken files
2013-01-02 19:21:43,437 - ubuntuone.SyncDaemon.tritcask - DEBUG - building the keydir, using: ['1357130913170152']
2013-01-02 19:21:43,437 - ubuntuone.SyncDaemon.tritcask - DEBUG - Ignoring empty live file.
2013-01-02 19:21:43,437 - ubuntuone.SyncDaemon.tritcask - INFO - keydir ready! (keys: 0)
2013-01-02 19:21:43,437 - ubuntuone.SyncDaemon.VM.MD - DEBUG - metadata version: 7
2013-01-02 19:21:43,438 - ubuntuone.SyncDaemon - ERROR - [Failure instance: Traceback: <type 'exceptions.AssertionError'>: Path u'\\\\?\\C:\\Users\\QWASS\\Ubuntu One' should be a bytes sequence.
twisted\internet\defer.pyc:362:callback
twisted\internet\defer.pyc:458:_startRunCallbacks
twisted\internet\defer.pyc:545:_runCallbacks
twisted\internet\defer.pyc:1095:gotResult
--- <exception caught here> ---
twisted\internet\defer.pyc:1039:_inlineCallbacks
ubuntuone-syncdaemon:236:async_main
ubuntuone\syncdaemon\main.pyc:116:__init__
ubuntuone\syncdaemon\volume_manager.pyc:432:__init__
ubuntuone\syncdaemon\vm_helper.pyc:91:create_shares_link
ubuntuone\platform\os_helper\windows.pyc:398:inner
ubuntuone\platform\os_helper\windows.pyc:657:make_link
ubuntuone\platform\os_helper\windows.pyc:397:inner
ubuntuone\platform\os_helper\windows.pyc:243:get_windows_valid_path
ubuntuone\platform\os_helper\windows.pyc:197:assert_syncdaemon_path
]
Traceback (most recent call last):
  File "twisted\internet\defer.pyc", line 545, in _runCallbacks
  File "ubuntuone-syncdaemon", line 90, in check_death
  File "twisted\python\failure.pyc", line 346, in trap
Failure: [Failure instance: Traceback: <type 'exceptions.AssertionError'>: Path u'\\\\?\\C:\\Users\\QWASS\\Ubuntu One' should be a bytes sequence.
twisted\internet\defer.pyc:362:callback
twisted\internet\defer.pyc:458:_startRunCallbacks
twisted\internet\defer.pyc:545:_runCallbacks
twisted\internet\defer.pyc:1095:gotResult
--- <exception caught here> ---
twisted\internet\defer.pyc:1039:_inlineCallbacks
ubuntuone-syncdaemon:236:async_main
ubuntuone\syncdaemon\main.pyc:116:__init__
ubuntuone\syncdaemon\volume_manager.pyc:432:__init__
ubuntuone\syncdaemon\vm_helper.pyc:91:create_shares_link
ubuntuone\platform\os_helper\windows.pyc:398:inner
ubuntuone\platform\os_helper\windows.pyc:657:make_link
ubuntuone\platform\os_helper\windows.pyc:397:inner
ubuntuone\platform\os_helper\windows.pyc:243:get_windows_valid_path
ubuntuone\platform\os_helper\windows.pyc:197:assert_syncdaemon_path