The root cause for the issue is discussed in detail(rather colorfully) in this blog post.(ht romainl).
I managed to find a solution by using the cp.exe shipped with msygit.
Ensure cp.exe is in your path
The cp.exe file can be found in <GIT_HOME>\bin directory. My path didn't not contain the ``\bindirectory. So I copiedcp.exeandmsys-1.0.dll` to a directory in my path.
Set the g:NERDTreeCopyCmd variable
Add the line below to the end of the _vimrc file
let g:NERDTreeCopyCmd= 'cp -r '
Fix the implementation of s:Path.copy function.
Replace the lines 2297-2299 of ~/vimfiles/bundle/nerdtree/plugin/NERD_tree.vim (assuming you used pathogen for managing vim plugins)
Replace the lines 2297-2299
let dest = s:Path.WinToUnixPath(a:dest)
let cmd = g:NERDTreeCopyCmd . " " . escape(self.str(), s:escape_chars) . " " . escape(dest, s:escape_chars)
With the lines below
let dest = a:dest
let cmd = 0
if s:running_windows
let cmd = g:NERDTreeCopyCmd . '"' . self.str() . '" "' . dest . '"'
else
let cmd = g:NERDTreeCopyCmd . " " . escape(self.str(), s:escape_chars) . " " . escape(dest, s:escape_chars)
endif