Heroku create command fails - no such file or directory

I am trying to deploy my first rails application to heroku, and unfortunately I am getting an error when running the heroku create command:

@ C:\railsprojects\sample_app> heroku create
The system cannot find the path specified.
Creating protected-reaches-1026... done, stack is cedar
http://protected-reaches-1026.herokuapp.com/ | [email protected]:protected-reaches-1026.git
 !    Heroku client internal error.
 !    Search for help at: https://help.heroku.com
 !    Or report a bug at: https://github.com/heroku/heroku/issues/new

    Error:       No such file or directory -  git --version  (Errno::ENOENT)
    Backtrace:   C:/Users/paul/.heroku/client/lib/heroku/helpers.rb:103:in ``'
                 C:/Users/paul/.heroku/client/lib/heroku/helpers.rb:103:in `has_git?'
                 C:/Users/paul/.heroku/client/lib/heroku/helpers.rb:108:in `git'
                 C:/Users/paul/.heroku/client/lib/heroku/helpers.rb:156:in `create_git_remote'
                 C:/Users/paul/.heroku/client/lib/heroku/command/apps.rb:255:in `create'
                 C:/Users/paul/.heroku/client/lib/heroku/command.rb:206:in `run'
                 C:/Users/paul/.heroku/client/lib/heroku/cli.rb:28:in `start'
                 C:/Program Files (x86)/Heroku/bin/heroku:29:in `<main>'

    Command:     heroku create
    Version:     heroku/toolbelt/2.39.4 (i386-mingw32) ruby/1.9.3

My initial thought is that GIT is not in the path or otherwise cannot be called, but I eliminated that as part of the problem by simply running git --version:

@ C:\railsprojects\sample_app> git --version
git version 1.8.3.msysgit.0

So, everything seems to be in order. Anyone else know what could be going wrong?

I am running Windows 7, and the version of the Heroku client is heroku/toolbelt/2.39.4 (i386-mingw32) ruby/1.9.3.

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