Hi Kenny,
Try adding this to your Web.config (or user.config)
<add key="Lucene.Net.lockdir" value="C:\mojoportal\mojodev\Web\Data\Sites\1\index" />
of course editing the path to match the correct physical path in your case.
This kind of configuration is needed in Medium Trust environments. Perhaps since your web server is on a domain, Medium Trust policy may be pushed down by group policy even if not configured directly on the web server.
Hope it helps,
Joe