Comment 3 for bug 339846

The precise failure is being masked a bit by bug 338563, which is that the pyrex code does not report the filename that's causing the error. If you run from bzr trunk (or wait for 1.13rc1), or run bzr under strace we should see what precisely is going wrong.

However, knowing it's line 343 does show it's

                    stat_result = lstat(entry.d_name, &statvalue._st)
                    if stat_result != 0:
                        if errno != ENOENT:
                            raise OSError(errno, strerror(errno))

This seems to be pretty strange: we can see the file in the directory listing but we get permission denied trying to lstat it, which is not usual unix semantics: if you can see it, you can stat it.

What happens if you run ls -l in that directory?