I was having a similar problem trying to install a package called AED. I tried using the install.packages() command:
install.packages('FILE_PATH', repos=NULL, type = "source")
but kept getting the following warning message:
Warning message:
In install.packages("/Users/blahblah/R-2.14.0/AED", :
installation of package ‘/Users/blahblah/R-2.14.0/AED’ had
non-zero exit status
It turned out the folder 'AED' had another folder inside of it that hadn't been uncompressed. I just uncompressed it and tried installing the package again and it worked.