Custom Workflow: File failed Initialization

This system was up and working fine but today it stopped accepting new files: 

"Failed: initialization failed (IOServer says Access Denied (file:/C%3a/Windows/TEMP/EpisodeCache/PrivateCache/WOFL-09112049-E5DF-4F88-8133-6E9DCB2BB049/Ryan%20QUICK%20CAST%20Nov%2029%2017.mov#Resolved))"

 

I have emptied the private cache and restarted several times. I have another workflow that picks files up from desktop watch folder and deposits them to the same server and those work fine. The troublesome workflow grabs from a folder on the server and puts them back into a new volume on that same server.  It has been working fine.  

 

 Windows 7 system 

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