We used to receive this error while deploying "wsp" files on our MOSS farm. This happened only on one WFE and not on the other. I was sure there was some process blocking the file deployment because this was happening only on one WFE.
After hours of head banging we figured out that we had a SharePoint backup third-party application configured on this WFE. This application was installed on this WFE. We had our production deployment window normally in the afternoon on weekedays and weekends. This error would not normally happen on the weekends. Combining all these we figured out that backup application was not running on weekend afternoons.
We checked with the storage management team here to pause or kill all backup jobs on a weekday that we had a scheduled "wsp" deployment. Amazingly we did not receive this error. Then we rescheduled the backup jobs accordingly so that it does not conflict with our code deployment window and the issue was solved.
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