Wubi (permission denied error during installation )

I too have this problem. I have Windows 7 (64) and have tried running the file as administrator too, with the same result. I have found and saved the log-file. It is quite long, but the error message mostly looks like the passage below, with different filenames and linenames:

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 in task download
11-14 10:05 DEBUG TaskList: ### Finished download
11-14 10:05 ERROR TaskList: [Errno 13] Permission denied: u'C:\\ubuntu\\install\\ubuntu-10.04.1-desktop-amd64.iso'
Traceback (most recent call last):
  File "\lib\wubi\backends\common\tasklist.py", line 197, in __call__
  File "\lib\wubi\backends\common\backend.py", line 493, in get_iso
  File "\lib\wubi\backends\common\backend.py", line 348, in download_iso
OSError: [Errno 13] Permission denied: u'C:\\ubuntu\\install\\ubuntu-10.04.1-desktop-amd64.iso'
11-14 10:05 DEBUG TaskList: # Cancelling tasklist
11-14 10:05 DEBUG TaskList: # Finished tasklist
11-14 10:05 ERROR root: [Errno 13] Permission denied: u'C:\\ubuntu\\install\\ubuntu-10.04.1-desktop-amd64.iso'
Traceback (most recent call last):
  File "\lib\wubi\application.py", line 56, in run
  File "\lib\wubi\application.py", line 130, in select_task
  File "\lib\wubi\application.py", line 156, in run_installer
  File "\lib\wubi\backends\common\tasklist.py", line 197, in __call__
  File "\lib\wubi\backends\common\backend.py", line 493, in get_iso
  File "\lib\wubi\backends\common\backend.py", line 348, in download_iso
OSError: [Errno 13] Permission denied: u'C:\\ubuntu\\install\\ubuntu-10.04.1-desktop-amd64.iso'

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To get better help installing Ubuntu inside Windows using Wubi please refer to Wubi project...

Please place the log file contents on http://pastebin.ubuntu.com
You can find it by entering %temp% in the address bar of Windows explorer and then looking for a file wubi-10.04.1-rev190.log

FYI the log identifies your timezone location and windows user name.