Cause: the above error occurs when services fails to perform a task such as Eseutil.exe (Exchange Server 5.0 and 5.5) is used to compact the database

Solution: Determine all the services needed to run, and then stop all the related services and Set the service to Manual Mode.

The following error message may also indicate a file permission or attribute problem:
Running error.exe -1032
Error -1032 (0xfffffbf8) = JET_errFileAccessDenied
Stated: Permission issues  can also cause this error message: 
Error -1032 (0xfffffbf8) = JET_errFileAccessDenied

Stop all the related services and set them to Manual Mode

 

http://support.microsoft.com/kb/148645