Re: Permission denied: u'C:\\ubuntu\\install\\ubuntu-9.10-desktop-i386.iso'
Try downloading the Ubuntu disc image yourself, burning it to disc and running the Wubi installer from the disc. It will then be accessing the CD, not Windows' C: drive.
Better yet, burn the disc, boot up from it and install Ubuntu as a dual-boot from there; it will avoid all the limitations of the Wubi install. Just make sure you back up all your data first, because it involves (non-destructively) repartitioning your hard drive. I say "non-destructively", but in reality any partitioning operation can go wrong.
I try to treat the cause, not the symptom. I avoid the terminal in instructions, unless it's easier or necessary. My instructions will work within the Ubuntu system, instead of breaking or subverting it. Those are the three guarantees to the helpee.
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