To reproduce the issue, start from a Unix-ish system where /tmp and the directory where nodejs is run are located on different file systems.
Then try to create a project. This step will fail with a 403 error returned by fsLocal.
Nodejs stdout shows:
> Service['home']: <<<
Error: EXDEV, rename '/tmp/com.palm.ares.hermes.bdPhoneGap112103-27269-1moyn8w.d/fb357e33ecd57106a66cf4c6c756cbae.json'
A simple rename cannot work across file systems.
Workaround: specify another tmp directory on the same filesystem with an environemnent variable. For instance: