I had the same problem; the fix wasn't a "-", a " ", or the language. My install path is "D:\Programming\energia". There's only one language installed and active in the language list, which is "English(United States)". The full message was:
Cannot run program "D:\PROGRA~1\ENERGIA\HARDWARE\TOOLS\MSP430\BIN\msp430-g++": CreateProcess error=2, The system cannot find the file specified
I moved the Energia folder to the root level of D: (i.e. I removed the "PROGRA~1" from the path) and it worked. This is a work around. I would like to be able to organize my drive more to my liking, specifically get 'Energia' back into 'Programming'. I already have CCS installed via a Windows installer to that 'Programming' folder, so I suspect modifying that folder's name (shortening it) would break that install.
I'm on a Win8 x64 machine, a recent Intel Ivy Bridge Dell laptop. Energia 0101E0009.
Roadrunner, it's my understanding that windows preserves the xxxxxx~1 the names just for backwards compatibility for old software that expects it. That said, even though it's unattractive, it should still function. My guess is that one part of Energia is using one system, and another part is using the other - something is getting lost in translation internal to Energia.