My colleague is having a similar problem with a the same error (2175). DW will spend hours rebuilding and counting overlapped files (around 300) and then not be able to replace the directory at the end.
My question is, how did you identify which files were overlapping, so that you could delete them? Did you remove all of the overlapping files before re-attempting to rebuild the directory or piecemeal until it worked?
Any more details you can provide would be greatly appreciated.
Mick