Wubi Installation – Permission Denied: ‘F:\\wubildr’ When Installing Using Wubi

I run into problem when tried to install Ubuntu 11.10 on Windows 7 using wubi installer. During installation popup with error similar to this appears:

Permission denied: for more details see the log file

Log file ends with the following error:

12-12 00:13 DEBUG  WindowsBackend: Copying C:\Users\Andrey\AppData\Local\Temp\pyl2DEA.tmp\winboot -> D:\ubuntu\winboot
12-12 00:13 ERROR  TaskList: [Errno 13] Permission denied: 'F:\\wubildr'
Traceback (most recent call last):
  File "\lib\wubi\backends\common\tasklist.py", line 197, in __call__
  File "\lib\wubi\backends\win32\backend.py", line 483, in diskimage_bootloader
  File "\lib\shutil.py", line 39, in copyfile
IOError: [Errno 13] Permission denied: 'F:\\wubildr'
12-12 00:13 DEBUG  TaskList: # Cancelling tasklist
12-12 00:13 DEBUG  TaskList: # Finished tasklist
12-12 00:13 ERROR  root: [Errno 13] Permission denied: 'F:\\wubildr'
Traceback (most recent call last):
  File "\lib\wubi\application.py", line 58, in run
  File "\lib\wubi\application.py", line 132, in select_task
  File "\lib\wubi\application.py", line 158, in run_installer
  File "\lib\wubi\backends\common\tasklist.py", line 197, in __call__
  File "\lib\wubi\backends\win32\backend.py", line 483, in diskimage_bootloader
  File "\lib\shutil.py", line 39, in copyfile
IOError: [Errno 13] Permission denied: 'F:\\wubildr'

Issue was written about this here. Is there any workaround around this?