Error Code - 36 can't copy iPhoto library to external HD

I have read a number of topics about the rather broad Error Code - 36 but I'm wondering if I am missing something.

Briefly:

1) iPhoto libray is on a MBP and is approx. 48 GB and 17,000+ pictures in size

2) Every couple of weeks I use finder to manually copy my iPhoto library to an external HD. Been doing it for ages, no issues.

3) Just tried it and got the Error Code - 36 after it has copied 37.5 MB only.

Here is what I have tried, and when I say "didn't work" I mean it still won't let me copy the library to the external HD:

A) Repaired permissions on external HD and MBP HD - didn't work.

B) Tried copying the library to two other computers on the network - didn't work.

C) Tried rebuilding the iPhoto library - didn't work

D) Tried copying the library to another location on the MBP - this DID work.

E) Tried copying the copy to the external HD - didn't work.

So based on this, it seems the issue is with the iphoto library file, not the external HD. So I figured I would try to copy a different file, something over 37.5 MB and see what happens. No joy! So at this point, I cannot copy ANY large files to any other machine OR external HD on my network.

I do have a Time Capsule which should be performing regular backups but not sure how this will help in this situation.

Here is the kicker, I upgraded to Snow Leopard a few weeks ago and I think this is the first time I have tried to back up my library. Since SL won't allow me to burn DVD's, use a Mosaic screen saver, or automatically sleep my computer is it possible SL is causing this? OH say it isn't so..............