I think I nailed the source of the error. This appears when you are saving in an encrypted folder. When you select to encrypt your home folder during the OS installation, you also encrypt the default download location for the various applications. I had the same issue, but when I moved the data to another folder, outside of the encrypted folder structure, the error disappeared.
Thanks pgotsis for your suggestion. However, here's to say that with Deluge you can change the destination file name.
Long Path Tool helped me in this situation. http://PathTooDeep.com
Thanks for sharing and please do not post in threads that have not had activity for a year or longer, since this is an old thread it has been closed.
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