From: http://www.eng-tips.com/viewthread.cfm?qid=298459

My guess is that you're probably using 64bit Windows 7?

On 64bit systems (Vista & Win 7), the two variables UGII_SDI_BPS_JOBS_DIR & UGII_SDI_OVERRIDE_HOME need to be set.
When they are unspecified they are created in the users profile, but Win 7 & Vista works their permissions differently from WinXP.

Creating those two variables & then pointing them to look at a folder, (c:\temp is the example I would follow) fixes the problem.

set UGII_BASE_DIR="C:\progra~2\UGS\NX 6.0\"
set UGII_ROOT_DIR="C:\progra~2\UGS\NX 6.0\UGII"

rem --------------------------------------------------------------------------------------------
rem set PATH
rem --------------------------------------------------------------------------------------------
set PATH=%SYSTEMROOT%\system32;%UGII_ROOT_DIR%;%UGII_BASE_DIR%;%PATH%

set UGII_SDI_BPS_JOBS_DIR=c:\temp
set UGII_SDI_OVERRIDE_HOME=c:\temp


%UGII_ROOT_DIR%\ugraf.exe

NXSA7-Riches-BeginningAndIntermediatePlotting.pdf: http://www-cad.fnal.gov/PLM_World/2006/academic_programs/NX/NXSA7-Riches-BeginningAndIntermediatePlotting.pdf

From: http://wwwasd.web.cern.ch/wwwasd/lhc++/FLEXLM/htmlman/flexuser/chap6.htm

  6.4 lmgrd
  lmgrd is the main daemon program for FLEXlm. When you invoke lmgrd, it looks for the license file 
  which contains the information about vendors and features. On Unix systems, it is strongly recommended 
  that lmgrd be run as a non-privileged user (not root).
  Usage is:
  lmgrd [ -app ] [ -c license_file ] [ -t timeout_interval ] [ -l logfile ]
        [ -s timestamp_interval ] [ -2 -p ] [ -v ] [ -x lmdown ] [ -x lmremove ]
  -app
  Required for Windows/NT systems.
  -c license_file
  Use the license file named.
  -t timeout_interval
  Sets a timeout interval, in seconds, during which redundant daemons must complete their 
  connections to each other. The default value is 10 seconds. A larger value may be desirable 
  if the daemons are being run on busy systems or a very heavily loaded network.
  -l logfile
  Write the debug log to logfile.
  -s timestamp_interval
  Specifies the logfile timestamp interval, in minutes. The default is 360 minutes.
  -2 -p
  Restricts usage of lmdown, lmreread, and lmremove to a FLEXlm administrator who is 
  by default root. If there a Unix group called `lmadmin' then use is restricted to 
  only members of that group. If root is not a member of this group, then root does 
  not have permission to use any of the above utilities. The `-p' option is available 
  in FLEXlm v2.4 and later.
  -v
  Prints lmgrd's version number and copyright and exits.
  -x lmdown
  Disallow the lmdown command (no user can run lmdown). If lmdown is disabled, you will need 
  to stop lmgrd via `kill pid' (Unix) or CTRL-ALT-DEL and stop the lmgrd and vendor daemon 
  processes (Windows 95). On Unix, be sure the kill command does not have a -9 argument.
  -x lmremove
  Disallow the lmremove command (no user can run lmremove)
  The -x lmdown and -x lmremove options are available in FLEXlm v4.0 and later.
  
  6.3 lmdown
  The lmdown utility allows for the graceful shutdown of all license daemons (both lmgrd and all vendor daemons)
  on all nodes.
  Usage is:
  lmdown [-c license_file] [-q]
  -c license_file
  Use the specified license file.
  -q
  Don't prompt or print a header. Otherwise lmdown asks `Are you sure? [y/n]: `.
  You should protect the execution of lmdown, since shutting down the servers 
  causes users to lose their licenses. See the `-p' or the `-x' options in 
  Section 6.4, `lmgrd,' on page 41 for details about securing access to lmdown.
  When shutting down redundant servers, there is a 1 minute delay before the servers shut down. 
  Do not use `kill -9' to shut down the license servers.

  must not have any other uglmgrd running on machine.
  32 and 64 bit uglmgrd.exe are same