I launched the wubi installer from Windows 7 to install Ubuntu 10.04 and after a 2 hour wait the installation failed due to the following error:
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Permission denied
For more information, please see the log file: C:\users\owner\appdata\local\temp\wubi-10.04-rev189.log
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After reviewing the log, it seems like the wubi installer can’t read the files within the appdata folder mentioned above.
So my workaround was the following:
I downloaded a tool for creating a virtual drive called Virtual CloneDrive (more info and download here, and don’t worry, it’s free) and mounted the Ubuntu .iso there, ran the installation and about 25 minutes later, I had successfully installed Ubuntu 10.04.
William Mora 
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