I am receiving the exact same problem. The directory in question is indeed writable ... it creates the .policy file okay, but doesn't seem to delete it.
If i run it inside of Eclipse it works; if i run it outside of Eclipse i get this issue. java.security.AccessControlException: access denied (java.io.FilePermission C:\Users\alan\AppData\Local\Temp\test2372885730606789235.policy delete) Any hints as to what is going on here? -- You received this message because you are subscribed to the Google Groups "Google App Engine for Java" group. To post to this group, send email to google-appengine-java@googlegroups.com. To unsubscribe from this group, send email to google-appengine-java+unsubscr...@googlegroups.com. For more options, visit this group at http://groups.google.com/group/google-appengine-java?hl=en.