I'm running BIDS from my own PC for now. When I'm done the package will be executed on a server through command line. I agree that permissions sounds like the problem, but the fact is run once the files are placed in the folder with no problem. It's the second time I try to execute, or attempt to alter the File Manager Connection is when the error is raised.

Interesting though, I just tried putting the file in another location like C:\Users\myname\Destination and it works now and repeatly. Was it the length of my initial path where the file was?