The issue is that when I put in a file name for the image output, Blender looks for a folder with that file name. So if I create a file name called "ddd" in folder "D:\dddd", it creates a path labeled "D:\dddd\ddd" where that last "ddd" is expected by python to be the last destination folder.
The resolution to this is to make a folder name the same as your desired file naming, and you will then have successful exports and opening of Octane.
I thought I was going crazy, now finally it makes sense, I just didn't understand how Python looked at path names.
CPU - i7-950 3.06 Ghz, 24GB Ram, Win7 x64, 2 display monitors, GeForce GTX 580 3GB Classified. I'm glad to say I LOVE OCTANE!