• I manually created a new folder on the server named "S:\SQL\Microsoft SQL Server\MSSQL10_50.MSSQLSERVER\MSSQL\DRI_KY193_DATA\" and added sa full access to it in permissions.

    SA is a sql user how did you configured permission in a windows folder, am i missing something.

    check in which account sql service is running and configure write access for that account and try.

    Regards
    Durai Nagarajan