On a cluster, the temp directory returned from theOperating Systemis the temp directory of the user that is running the cluster service, which will be %USERPROFILE%\Local Settings\Temp.
1. Determine which user is running the Cluster Service.
2. Locate this users temp directory. it will most likely be C:\Documents and Settings\<clusterserviceuser></clusterserviceuser>\Local Settings\Temp.
3. Edit the properties for this folder and explicitly grant full control to the user that is running SQL Server. In LiteSpeed Version 4.8, there will be a new parameter so that when using @OLRMAP=1, users can also specify a temp directory where they want the lsm file to be generated.