In addition to all the good comments already posted, try printing the Company Profile report - which does not require a work file. This can help point out if the issue is with the local temp directory or maybe a table problem.

Perhaps also log into the machine as the Admin (not the user) to identify whether rights is indeed a culprit.

Reports that require work files are typically the batch listings, posting journals and transaction reports. Those such as Terms Code list and other general reports do not require a work file.