Please list exactly what the names of the file and folder are.
The folder name:
The file name:
Now if I open this file in PS CS6,
do some modifications, ie. duplicate layer, and try to "Save", I will get the error.
But wait, I've just noticed something ...
The location name in the file's properties is:
But, the actual folder structure is:
C:\Users\User\My Documents\My Work\Test
I think I have resolved this.
I forgot to mention that I have Sugarsync over that file structure.
However, I do not know if Sugarsync has anything to do with the error.
I copied the whole folder structure under a newly created folder, and I am no longer getting the error.
Then yes, sugarsync might have a lot to do with the error.
I've just uninstalled Sugarsync, and now everything is ok and works fine under the original folder structure.
Well, lesson learned.
You might want to let Sugarsync know about this - so they can debug their software.
I provided my feedback within their survey before uninstalling the software.