Recently during a Project Server 2010 installation I encountered the above message. With a bit of research was able to locate the steps below. In our case it worked.
- Open Regedit.
- Find the key “HKEY_LOCAL_MACHINESYSTEMCurrentControlSetControlSession Manager”.
- Rename the “PendingFileRenameOperations” value to “PendingFileRenameOperations2”.
- Restart your machine and then try again.