Check out MSKB Q239759

"The Microsoft Windows NT account under which the MSSQLServer service starts does not have Full Control permissions on the directory in which you are trying to create the database. "

If this is accurate, your server is configured incorrectly. The account that the MSSQLSERVER service uses is supposed to be a member of the local Administrators group.

-Mike

>Encountered an unexpected error while checking the sector size for file 'E:\MSSQL7\DATA\TEMPDB.MDF'.