Do you have the error continuously?
Are you sure the folder is excluded from virus scan or indexing?
Silly question - but have you checked disk space and permissions on the External Storage location?
well every question is silly till you know the answer.
My first guess was regarding permissionss, space etc and these small things.
this was the error caused while running Sync (using FMEasySync), so the container data coming from client machine had the file with similar name as the file already present on the server container storage area.
Thanks for the comments guys..
Yes, it wasn't the folder or Server process causing this, it was actual container storage filenaming causing the problem.
I have to make the filenaming unique so it doesnt happen again.
Thanks for your comment