I was going to file this as a new bug, but then I found this in the FAQ:
"I need to overwrite a remote file that isn't owned by me, but I'm
member of its group. The file has write permission for group. After
transfer I get a message like 'Upload of file <filename> was successful,
but error occurred while setting the permissions and/or timestamp'"
"While copying files such as this, you need to turn off Set permissions
and Preserve timestamp options or turn on Ignore permission errors"
This almost describes my problem exactly, the thing is the error message
I get is different:
"Copying file <file> failed."
The file gets transfered anyway. My problem is that the second solution
in the FAQ - "turn on Ignore permission errors" - doesn't solve the
problem. This may have something to do with the fact that the error
message isn't really a permissions message, but it should be.
I'm using WinSCP 4.0.5, protocol SCP, Norton commander style.