Well I kept on tring to figure out what was going on and I got further.
The problem is on the TM side. The error is saying I (actually my wife because I was loged in in her accout) doesn't have permission to copy the file from the TM drive. When I did a Get Info she had RW and everyone had Read permissions.
The file is the data file for Quicken Essentials. Now this gets crazy to me. She's the one who does Quicken so it was created by her and placed in her Documents folder where TM backed it up. So if anyone should have access it should be her and she is and Admin.
I loged into my account and traversed the TM drive looking for the file. Once found I could drag n drop it to my desktop once I gave my Admin password. I tried doing the same on her account and I still got the same error message.
There are other files my wife can restore from TM just fine. This has got me very nervous about TM. If it can happen to my wife on some file I'm sure it's happening with me on other files that I just don't know about until the time comes.