upgrade to 3.0 and 3.1 fail – warning given

I’m trying to update from 2.9.2 to 3.0 (or 3.1). I keep getting the following warning/error:

Warning: copy(D:\Hosting\2269759\html/wp-activate.php) [function.copy]: failed to open stream: Permission denied in D:\Hosting\2269759\html\wp-admin\includes\class-wp-filesystem-direct.php on line 205

Warning: copy(D:\Hosting\2269759\html/wp-activate.php) [function.copy]: failed to open stream: Permission denied in D:\Hosting\2269759\html\wp-admin\includes\class-wp-filesystem-direct.php on line 205

Could not copy file: D:\Hosting\2269759\html/wp-activate.php

Installation Failed

I have no idea what the problem is. Any help would be much appreciated