I use a 2GB Transcend USB Flash drive or memory stick to store my office data. Today when I tried to copy some data from my Computer to the memory stick, an alert popped up with Error 0X80070052, and the directory or file can not be created. Here is my experience in fixing the error:
http://www.quickonlinetips.com/archives/2007/09/how-to-fix-error-0x80070052-on-usb-flash-drives/