Error :- SQL1052N The database path "c:\mhi" does not exist.

[jabber]

Hi,

I am trying to create databases in a specific diretcory on my windows server.
The command I am using is :-
db2 create db mhi on c:\mhi with 'mark test'
Error received is :-
SQL1052N The database path "c:\mhi" does not exist.

I have ensured that the variable :- DB2_CREATE_DB_ON_PATH=YES
And that the instance has been restarted.
The version is 8.x and this is a NEW install.

Regards

Mark