editor compiling errors

I am trying to compile the UE4.sln in the “UnrealEngine-dev-vr-editor” folder, getting these errors …
1>------ Build started: Project: ShaderCompileWorker, Configuration: Development_Program x64 ------
1>Build started 12/27/2016 5:27:39 PM.
1> 1>
1>Build:
1> Target is up to date
1>
1>Build succeeded.
1>
1>Time Elapsed 00:00:01.36
2>------ Build started: Project: UE4, Configuration: Development_Editor x64 ------
2>Build started 12/27/2016 5:27:41 PM.
2> 1>
2>Build:
2> Creating makefile for UE4Editor (no existing makefile)
2> Performing full C++ include scan (no include cache file)
2> 1>
2>EXEC : error : System.IO.PathTooLongException: The specified path, file name, or both are too long. The fully qualified file name must be less than 260 characters, and the directory name must be less than 248 characters.
2> at System.IO.PathHelper.GetFullPathName()
2> at System.IO.Path.LegacyNormalizePath(String path, Boolean fullCheck, Int32 maxPathLength, Boolean expandShortPaths)
2> at System.IO.Path.GetFullPathInternal(String path)
2> at System.IO.Path.GetFullPath(String path)
2> at UnrealBuildTool.FileReference…ctor(String InPath) in C:\Program Files (x86)\Epic Games\4.14\Engine\Source\UnrealEngine-dev-vr-editor\Engine\Source\Programs\UnrealBuildTool\System\FileSystemReference.cs:line 558
2> at UnrealBuildTool.VCToolChain.CompileCPPFiles(UEBuildTarget Target, CPPEnvironment CompileEnvironment, List1 SourceFiles, String ModuleName) in C:\Program Files (x86)\Epic Games\4.14\Engine\Source\UnrealEngine-dev-vr-editor\Engine\Source\Programs\UnrealBuildTool\Windows\VCToolChain.cs:line 1411 2> at UnrealBuildTool.UEBuildModuleCPP.Compile(UEBuildTarget Target, UEToolChain ToolChain, CPPEnvironment GlobalCompileEnvironment, CPPEnvironment CompileEnvironment) in C:\Program Files (x86)\Epic Games\4.14\Engine\Source\UnrealEngine-dev-vr-editor\Engine\Source\Programs\UnrealBuildTool\Configuration\UEBuildModule.cs:line 1363 2> at UnrealBuildTool.UEBuildBinaryCPP.SetupBinaryLinkEnvironment(UEBuildTarget Target, UEToolChain ToolChain, LinkEnvironment LinkEnvironment, CPPEnvironment CompileEnvironment) in C:\Program Files (x86)\Epic Games\4.14\Engine\Source\UnrealEngine-dev-vr-editor\Engine\Source\Programs\UnrealBuildTool\Configuration\UEBuildBinary.cs:line 655 2> at UnrealBuildTool.UEBuildBinaryCPP.Build(UEBuildTarget Target, UEToolChain ToolChain, CPPEnvironment CompileEnvironment, LinkEnvironment LinkEnvironment) in C:\Program Files (x86)\Epic Games\4.14\Engine\Source\UnrealEngine-dev-vr-editor\Engine\Source\Programs\UnrealBuildTool\Configuration\UEBuildBinary.cs:line 525 2> at UnrealBuildTool.UEBuildTarget.Build(UEToolChain TargetToolChain, List1& OutputItems, List`1& UObjectModules) in C:\Program Files (x86)\Epic Games\4.14\Engine\Source\UnrealEngine-dev-vr-editor\Engine\Source\Programs\UnrealBuildTool\Configuration\UEBuildTarget.cs:line 2508
2> at UnrealBuildTool.UnrealBuildTool.RunUBT(String[] Arguments, FileReference ProjectFile) in C:\Program Files (x86)\Epic Games\4.14\Engine\Source\UnrealEngine-dev-vr-editor\Engine\Source\Programs\UnrealBuildTool\System\UnrealBuildTool.cs:line 1850
2> 1>
2>C:\Program Files (x86)\MSBuild\Microsoft.Cpp\v4.0\V140\Microsoft.MakeFile.Targets(41,5): error MSB3075: The command “…\Build\BatchFiles\Build.bat UE4Editor Win64 Development -waitmutex” exited with code 5. Please verify that you have sufficient rights to run this command.
2>
2>Build FAILED.
2>
2>Time Elapsed 00:00:29.80
========== Build: 1 succeeded, 1 failed, 2 up-to-date, 0 skipped ==========

I have removed the 260 char limitation for file names and folder names, yet it is complaining about it.
If I run the setup.bat file I get the same file length error before it exits.
Thanks