To minimize issues caused by features or quirks of the OS, anti vir, mod managers and other third party programs, DynDOLOD and TexGen prevent the use of certain paths and folders.
Do not install DynDOLOD into special OS folders like 'Programs Files' or 'Program Files (x86)', User, Documents, Desktop, Download and also not into SteamApps, game or any mod manager folders.
See installation instructions.
Do not mix with xEdit or xLODGen installations.
If unsure, install to C:\DynDOLOD\