Azure : The specified path, file name, or both are too long. The fully qualified file name must be less than 260 characters, and the directory name must be less than 248 characters.

Problem: The specified path, file name, or both are too long. The fully qualified file name must be less than 260 characters, and the directory name must be less than 248 characters.


Solution:
In azure, while running the project in temporary folder it creates your azure project and its related files. some dll names are large so in result whole path is large and which results in above error.

There are 2 solutions to solve this issue:

Solution 1:
Step 1: Open .ccproj project
Step 2: Under PropertyGroup Add following line
           <ServiceOutputDirectory>C:\azuretmp\</ServiceOutputDirectory>

Source : http://govada.blogspot.in/2011/12/windows-azure-package-build-error.html

Solution 2:
Step 1: Right click on "My Computer" -> Select Properties
Step 2: Click on "Remote Setting" -> Select Advanced -> Select Environment variables -> Click on "New" -> Add Variable name as "_CSRUN_STATE_DIRECTORY"
and Add Variable value as whatever you want. ex: C:\A -> click on save

Source: http://blogs.msdn.com/b/jnak/archive/2010/01/14/windows-azure-path-too-long.aspx

Happy Coding !!