Resolution:
There are two scenarios in which you can receive this error while starting TIBCO EMS as a Windows Service.

1). When your path contains spaces and you are using an EMS version prior to 5.0.0 .
If you are using EMS Version prior to 5.0.0 you will need to use the short directory name for a path containing spaces.

Example:

The path for tibemsd.conf is:

“C:\EMS Configuration\tibemsd.conf”

If you register your service as the following you will get above error.

emsntsrg /i tibemsd c:\tibco\ems\6.0\bin c:\tibco\ems\6.0\bin "-config C:\EMS Configuration\tibemsd.conf" EMS_S

To obtain the short directory name use the command “dir /x” and place it in your path as follows:

C:\&gtdir /X
08/03/2011  12:32 PM    &ltDIR>          EMSCON~1     EMS Configuration

emsntsrg /i tibemsd c:\tibco\ems\6.0\bin c:\tibco\ems\6.0\bin "-config C:\EMSCON~1 \tibemsd.conf" EMS_S

2). If the EMS service is running with a Local System account which does not have network access.  

You could configure your EMS service to run/log on with an Account which does have network access.

Example:

Register EMS as a Windows Service as follows:

emsntsrg /i tibemsd c:\tibco\ems\6.0\bin c:\tibco\ems\6.0\bin "-config \\xx.xxx.xx.xx\SharedEMSFiles\configuration_files\tibemsd.conf" Remote_EMS

Open properties of the Windows Service “TIBCO EMS Server Remote_EMS” .

Go to “Log On” tab and select the radio button named “This Account” instead of “Local System Account” for “Log on as" of Service.

Give user in “This Account” text box which has full rights on the shared folder.

If profile is disabled then enable it. Save the settings by clicking OK and start the Service.

Error 267: The directory Name is invalid.