This is a known issue and modifying the above path to remove the brackets and hyphens will allow you to work around this.
Example of a modified path:
"M:\Xilinx_Workspace\testcase\03_test_2014_05_16_R2013b\03 Testing\04 Testingr\11 Testing"
Note: Path lengths can also be an issue on the Windows O/S.
In some cases after modifying the path to remove brackets and hyphens an Error will still occur due to the path length to the current working directory.
Shortening the path will resolve this issue.