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Well, it's impossible to install product to long named path. I mean paths about few thousand characters. Native OS API and Java itself handle such paths correctly. Moreover NetBeans IDE handles long paths in right way - you can check it with creating class in the long named package. So it's looks bit strange - IDE can not be installed into path it can use. BTW I wrote special tool for creating and deleting such paths using WinAPI so you can ask me about or create your own Java based tool for experiments.
Not a very common case. ->P3
the core of this issue is using unpack200.exe. It seems that it doesn`t support long path names ;(
no plan to fix it for beta1 ->TBD
filed a bug 6612389 in bugtrack.
the issue is fixed now. The NBI engine is now able to install product to the long path when running on JDK6. As for the NetBeans 6.0 installer all of the products has problems when installing in long path: NetBeans can`t start, some processes (imqbrokersvc) crach during glassfish domain creation, tomcat cannot start, etc. Thats why the long path names installation are currently disabled for NetBeans 6.0 installers.