BASE diff error: file does not exist

RESPONSE
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About BASE and LOCALBASE. The version, on which you checkout files
considered as BASE. When you compare with BASE, this version should be
retrieved from server. However, when you perform checkout, the same version
was copied to /CVS/Base. Basically this is the same. Only one is retrieved
from server, over located on local drive. The LOCALBASE especially useful
when you are offline from server, because you always can determine which
lines of code you change, and even can apply undo checkout command.
You can signup as user to our website and open support ticked for this.
This way it will be easy for me to notify you when fix (if
necessary) will be done for this problem.

ORIGINAL ISSUE
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I used to use the (BASE) diff when I right click a file in .Net and select
'Compare Versions' - but now I get an error - The File
"C:/DOCUM~1/gsauer/LOCALS~1/Temp/UDCDCF/BASE/TransactionDetail.cs" does not
exist! It works if I use (LOCALBASE).

What is the difference between (BASE) and (LOCALBASE)?
AND
Do you know a way I might be able to fix the error with the (bASE) diff?

We just installed version 1.2.040330 - I have to go back to a 1.1.031006 to
get the (BASE) diff to work. But, then I have to go to 1.2.040330 to be
able to pull our branch code. I can use (LOCALBASE) right now, if it
makes sense.

Thanks