Originally Posted by KillerBug
The problem is that it says that for everything, even things without that file. Makes me think that maybe it crashed and left some temporary files behind that are gumming up the works.
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You've tried "Run as Administrator" I'm assuming? Any file (not just that file) residing in a protected directory tree will result in that error, without the proper permissions.
I don't believe there's anything left in the temp causing the problem, because I programmed it to overwrite if such a file exists. Although it's completely possible I may have missed a line. Try this for me and let me know if it changed errors or worked:
1) Goto windows explorer (file browser) and type %temp% and it will take you to your Window's temp folder
2) Look for a folder that starts with "DOStoPS3_" and delete it. (this folder shouldn't even exist, though a crash could've left it)
3) Try making a pkg again and let me know what the results are
If it works or gives a different error, then it's something that I'll have to look into.