Summary
Error
Physical directory '<path>' of project '<project_name>' is inaccessible or does not exist. Make sure that the user running the service/servlet (windows/unix) has the required permissions.;
Cause
Given this is a valid error be sure to check that the path and permissions are valid.
However, this error is also known to occurr when the project database is incorrect and the path is also incorrect.
This occurs becuase the restore mechanism parses the PHYSICAL_DIRECTORY element in the dbid.xml and validates that path before the database is validated.
Fix
Be sure to check that the value of the DB_NAME element and the value of the PHYSICAL_DIRECTORY element in the dbid.xml are valid.
Also be sure to close the Restore and open it fresh otherwise the previously attempted Restore data will remain cached where changes to the dbid.xml are not considered.