This error may prevent you from copying files to another computer or to a hard drive. The error is especially common when using Windows Vista, and may occur if a user is copying a large number of files to an external device.
Three things you can do when The directory or file cannot be created
This problem occurs as a result of a kernel leak. Microsoft has a hotfix available for this problem. Go to: http://support.microsoft.com/kb/942435/en-us and download the hotfix and install it. After installation, restart your system. This hotfix will resolve the error in almost all instances. If the error still persists, make sure you have installed the latest Windows Vista Service Pack.
TipFor further information please read: How to fix Windows error #0x10010000