Hmm, so your system cannot create swap file. Interesting...
1. You didn't mount games as CD, right? CD cannot be written...
2. Is there anything else that could make your files read-only? Or maybe, something limits your free space?
3. Did you get Win3 from this discussion? Do you still get previous "cannot found" messages, or it's gone? Are you able to type in SimTower _now_?