I am not familiar with the Updater; however, did you check that the destination DB is closed?

Copy it to a destination that you know you have full access, such as C:\My Documents on your own PC.  If it works, it's a permission issue with your other destinations, which only someone familiar with your network can fix.

I am the network admin will full access to all folders.  I do not believe it is security issue, unless the DB is accessing some other folder than those listed.

Having full network access doesn't mean you have it all the time.  Shares could go offline, files locked by users or apps, credential issues, all kinds of potential issues.  Right now you need to eliminate some possibilities.  Copy a local file that you know is fully accessible to the destination, and copy the source file to a local destination that you know is fully accessible.  Of course, check the values of SourceFile and DestFile variables by hovering your mouse over the yellow line in the editor.

I just tried that and it gave the same premission denied error.

What kind of setup do you have that the local DB is also on the server?

Just to confirm, you tried setting local locations on the same machine for the Remote DB and Local DB in like your C Drive?

I did try it on my C Drive with the same concept as the server.   It appears that the permission denied is on the copy script making a backup.    It denied the first time, then i deleted the accdb.backup file from the user folder and it worked the second time (on the C drive, I have not tried on the main server env yet).  Maybe it is an overwrite issue where it cant overwrite the .backup.  

We have a server share with all the front ends in individual folders for users and they have shortcuts that point to it.  Each user has their own front end (only 18 of them).  The backend has its own folder in that share.

Kevin's tip to hover to show the path was a great tip to see what the error is on.

Regarding overwriting an existing file, the CopyFile command cannot overwrite a file with read-only access, or a "permission denied" error will occur.  

Copying a read-only file to a new file is fine, but that new file will also be read-only, inheriting all permissions from the original file.  If you try to overwrite that new file, the error will also occur.  

CopyFile has an option to always overwrite the destination file (which is True by default, by the way):

    fso.CopyFile OriginalFile, DestFile, True

But that will also cause an error if DestFile is read-only.

I am having the same issue with my updater. I am able to debug it and move past the error. So I put in a On error resume next and on error GoTo 0 and it seemed to work like normal again. But, I am having another issue where every time I push an update, my on local admin copy's Custom Navigation pane gets all scrambled. I had all my database objects in custom folders and now they are scattered. Any ideas?