Help - SAP Web IDE error with Extension projects

I recently upgraded to the new SAP Web IDE 1.4.2.  When I launch the browser and click on Extension project I get the following error:

2:24:50 PM (git) Status request failed Request failed: Bad Request URI: /orion/s2s/gitapi/status/file/s0012240728trial$S0012240728-OrionContent/C:%5CUsers%5CSarah%20Lottman_2%5Cgit/

I've tried everything but cannot get an extension project to work.  Any ideas? I've deleted the optional Git Settings from the Web IDE tool but the error persists.

I can develop new applications, but all extension projects give me the error: "Creating the extension project failed"