Normally your computer has a variable named HOME that refers to your home directory. Eclipse/Git depend on that environment variable being set to determine where to store files that are supposed to be for your use only.
For some reason your system does not have this variable set.
You can follow the instructions here to get to the appropriate area to set a user environment variable.
You want to add a user variable with the name HOME and the value C:\Users\Michael.
Note that you want to set a *user* variable, not a *system* variable. A user variable applies only to your user account, whereas a system variable applies to all users.
