PROBLEM
Attempts to publish a geoprocessing service from a Python script fails, returning the generic error code 00178 on a Python analyzer (such as IDLE or PythonWin). This error indicates that the script is using a system file, even when it is not.
This issue occurs when there are multiple folders registered as data source locations. For instance, a Python script and an ArcMap layout template file are located in separate folders, and registered individually as data sources.
For more information on error 00178, please refer to ArcGIS Help: 00178: Data: <value>; used by <value> cannot be copied to the server.
Note: When registering a data source location, select the absolute path type if the script changes ownership frequently. If a file is shared over a network, ensure the data source location is defined using the UNC path type. For more information, please refer to ArcGIS Help: Paths explained: Absolute, relative, UNC, and URL.
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