Hi,
You should contact tech support with this issue. But here is something to check...
As a user of EG 3, did you define a library in the EG administrator to redirect your default output location to EGTASK? If so, you might try using the SAS Enterprise Guide Explorer (off of the Tools menu) to delete and redefine that library.
Another test you can do first: try changing the settings for Tools->Options->Tasks: Output Library to put WORK at the top of the list instead of EGTASK, and then try creating a query. If it works, then try the above step of deleting/redefining EGTASK.
Chris