R script error - The system cannot find the path specified

I have the latest PowerBI desktop loaded on Win2008R2.

PowerBI automatically and correctly detected the R folder location as : C:\Program Files\R\R-2.15.3

I have also made sure that the above R folder is in the PATH

I have a simple R script as below:

x<-1:11
hist(x)

The Error message  I get is:

Error Message:

R script error.
The system cannot find the path specified.

Stack Trace:

Invocation Stack Trace:

Error details
R script error.
The system cannot find the path specified.

Stack trace
Microsoft.PowerBI.ExploreServiceCommon.ScriptHandlerException: R script error.
The system cannot find the path specified.
---> Microsoft.PowerBI.Radio.RScriptRuntimeException: R script error.
The system cannot find the path specified.

at Microsoft.PowerBI.Radio.RScriptWrapper.RunScript(String originalScript, Int32 timeoutMs)
at Microsoft.PowerBI.Client.Windows.R.RScriptHandler.GenerateVisual(String script, String inputVariableName, IDataReader dataReader, Nullable`1 viewportWidthPx, Nullable`1 viewportHeightPx)
--- End of inner exception stack trace ---
at Microsoft.PowerBI.Client.Windows.R.RScriptHandler.GenerateVisual(String script, String inputVariableName, IDataReader dataReader, Nullable`1 viewportWidthPx, Nullable`1 viewportHeightPx)
at Microsoft.PowerBI.ExploreServiceCommon.ScriptVisualCommandFlow.RunInternal(Stream dataShapeResultStream, QueryBindingDescriptor& bindingDescriptor)
at Microsoft.PowerBI.ExploreServiceCommon.ScriptVisualCommandFlow.Run(Stream dataShapeResultStream, QueryBindingDescriptor& bindingDescriptor)
at Microsoft.PowerBI.ExploreHost.SemanticQuery.ExecuteSemanticQueryFlow.TransformDataShapeResult(QueryCommand transformCommand, String dataShapeId, SemanticQueryDataShapeCommand command, Stream dataShapeResultStream, QueryBindingDescriptor& bindingDescriptor)
at Microsoft.PowerBI.ExploreHost.SemanticQuery.ExecuteSemanticQueryFlow.ProcessAndWriteDataQuery(IQueryResultDataWriter queryResultDataWriter, DataShapeGenerationContext dsqGenContext, DataQuery query, ServiceErrorStatusCode& serviceErrorStatusCode)
at Microsoft.PowerBI.ExploreHost.SemanticQuery.ExecuteSemanticQueryFlow.ProcessAndWriteSemanticQueryCommands(IQueryResultsWriter queryResultsWriter, ExecuteSemanticQueryRequest request, IConceptualSchema conceptualSchema)

Activity ID
b832ed01-aa73-ce0e-b460-9ec759b33f9e

Time
Fri Dec 25 22:55:54 PST 2015

Version
2.30.4246.281 (PBIDesktop)