Health Check produces error report "Error using UTL_FILE" when running against an 11g db (4308563)

Running Database | Diagnose | Health Check (with alert log options checked) against an 11g database and the following errors are displayed:

! Error using UTL_FILE
! Possible causes:
! 1) You don't have privileges to execute the UTL_FILE package.
! To verify, try executing this pl/sql block in Editor.
! If you don't have the required privileges, it will give an error.

declare
afile utl_file.file_type;
begin
if utl_file.is_open(afile) then
null;
end if;
end;

! 2) UTL_FILE_DIR initialization parameter does not include one of these lines:
! utl_file_dir=d:oracleproductdiag dbmssidsid race
! utl_file_dir=*
! To verify, look under DBA -> Oracle Parameters

! 3) alert.log file name is not among the following:
! (if this is the case please inform Quest support)
! alert_sid.log
! sidalrt.log  

! 4) No directory exists in the database for the OS path: d:\oracle\product\diag\ dbms\sid\sid\trace,
! or directory exists but privileges have not been granted for it.
! Toad attempted to use directory: TOAD_BDUMP_DIR. Verify READ/WRITE privileges on this directory.

All 4 possible errors have been checked, and everything appears in place.