Manage Files right bar error

What would cause this? My permissions on the dirs and files are 666

file(d:\inetpub\test\blog/): failed to open stream: Permission denied in d:\inetpub\test\blog\wp-admin\admin-functions.php on line 1463

Warning: implode(): Bad arguments. in d:\inetpub\test\blog\wp-admin\admin-functions.php on line 1463

Thanks for any help.
Doug