Reducing file name of google earth features (placemark, path, polygon) as shown in this video could be one of the solution.
Error:
The output cannot be created. Potential reasons include data locking, an incorrect path, and limited access rights.
Solution:
Confirm that the data is not locked by another user or application and that you have full rights to the workspace being used. Check to make sure that the path to the data is correct. Try creating the output in a new location.
For details:
help.arcgis.com/en/arcgisdesktop/10.0/help/index.html#//002200000002000000.htm
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