Hello Ken,
Thanks for giving guideline, I checked for the folders such as "8c" "96" etc in the respective error messages, as I created folders in the moodledata and the respective location, with continue button the debugging mode gave me more no of such folder errors, so created all the folders and the files.
The file I created was like right click and create new note.txt files and renamed it with the encrypted file name and amazingly it worked for me.
Thanks once again.
Umesh