During the process of trying to upgrade to SP1 on our MOSS and Project Server 2007 environment I hit the following problem when finally running configuration wizard which stopped it dead in its tracks…
An exception of type System.Runtime.InteropServices.COMException was thrown.
Additional exception information: The path specified cannot be used at this time. (Exception from HRESULT: 0x80070094)
After searching around I could find nothing in TechNet, MSDN or the wider Internet that applied to this error message. I did find an interesting but what seemed unrelated blog entry about SSP and Index Services becoming unstable but this had nothing to do with with running the SharePoint Configuration Wizard! Interestingly the final line in the blog entry indicated that the author had received a "The path specified cannot be used at this time" error when trying to start IIS Manager" so I decided to try and open IIS Manager as well. IIS Manager started up without the error but show no connected IIS server. Next I tried to attach to the server (Actions –> Connect) and now I received the same "The path specified cannot be used at this time" error!
I found the easiest way to fix this was to do and IISRESET and restart IIS Manager. After this IIS Manager started up fine with the expected server connection and the SharePoint Configuration Wizard ran through to completion without errors.