Read through the installation docs... they are very thorough. Then reinstall UG into a folder WITHOUT SPACES IN THE PATH! This single issue has caused MANY problems within UG. If you allow UG to install to the default location, c:\Program Files\EDS\Unigraphics NX2... many problems arrise, not the least of which involves the GM toolkit. Try c:\Unigraphcs_NX2. It will fix your problem. ;-)
You can also add a tilde ~ after every 6 characters in the path name(s) that contain directories with spaces in them, should UG already be installed in the default location. Such as:
C:\Progra~\EDS\Unigra~
Doing this in the GM enviroment variable settings files will be time consuming, but faster than reinstalling. Should work for any variable path.