When the temporary upload folder has not the correct rights, so Joomla can not store the package there this might also cause this error.
When you tried standard mode before, maybe it works in ftp mode. I recommend not to use the ftp mode because of some side effects on some servers, e.g. the components admin folder is not writeable for the component and so the configuratino file cannot be stored (but this is not your problem currently).
uddeIM & uddePF Development
CB Language Workgroup
CB 3rd Party Developer
Well this is actually my third Component today. The site is new but I am well versed with the procedures. Have done it in the past as well. This is the first time that it has happened! The only problem that I see is the Server timing out because of the size of the file probably. Is there a way of uploading the entire zip package and then installing it?