new directories created as read only on windows

Looking at your errors, I'm guessing you've set up the paths incorrectly in settings.php. The paths suggested by the module (ie /tmp) are appropriate for Unix servers, but you appear to be using Windows... Fix that path to point to a real directory for which you have write permissions and try again. You probably need to use something like 'c:\\windows\\temp' or 'c:\\winnt\\temp'.

you need to give your web server permssion to the file dir. the errors you post say 'access denied'. you will have to google to understand hown to do so if you don't already know.

Perhaps this is caused by files defaulting to read only on Windows and the undeclared variable problem: http://drupal.org/node/207712 ?

I played with it for a while to find a workaround, i tried to change files and permissions with chmod and by hand, but it didn't solve. so i'm agree with @greggles , i may come up with a solution later.

:) I finally fixed it by using command line instead of unlink function in windows. please have a look at the patch

fread warning and another bug fixed

I *think* I have this working in IIS 6 on Server 2003, however I had to remove the test in:

function cache_delete_file($file) {
 if ($_SERVER['WINDIR'] || $_SERVER['windir']) {
  $file=realpath($file);
  return system("del $file");
 } else {
  return unlink($file);
 }
 exit;
}

so that it reads:

function cache_delete_file($file) {
 $file=realpath($file);
 return system("del $file");
 exit;
}

I have tried both codes, while every thing else works fine, I get the output from the system command in the delete function.
It prints out the value of the $file variable.
Any thoughts on this issue, I am stuck.
U can check the issues list for detailed output i am getting.

Fixed in 6.x version: #375293: Drupal 6.x
You can backport it.

Basically:
1.
Fixed code for fread() bug:

  if (file_exists($cache_file)) {    
    if ($fp = fopen($cache_file, 'r')) {
      $filesize = filesize($cache_file);
      if ($filesize > 0 && flock($fp, LOCK_SH)) {
        $data = fread($fp, $filesize);
        flock($fp, LOCK_UN);
        $cache = unserialize($data);
      }
      fclose($fp);
    }
  }

2. Fixed code for unlink() bug:

    $file = realpath(cache_filename($cid, $table));
    if ($fp = fopen($file, 'w')) {
      // only delete the cache file once we obtain an exclusive lock to prevent
      // deleting a cache file that is currently being read.
      if (flock($fp, LOCK_EX)) {
        unset($fp); // free handle before delete
        unlink($file); // delete useless cache file
      }
    }

You can't remove file if you haven't free the file handle.

I don't have any diff on my win machine, so please test it and create some patches or download 6.x version.

Please test following patch.