Where do you have the libraries located? looking at the log that you are receiving when you compile, it looks like the libraries are in C:\Users\pksangha\Documents\Arduino_Intel\libraries\Adafruit_Motorshield ....Is this right?
Is the IDE and all the folders/files in C:\Users\pksangha\Documents\Arduino_Intel ? Or are they in C:\arduino-1.5.3-Intel.1.0.4 ?. It seems to be an error while the IDE tries to get the libraries. Could you check that? I think it could be the root of the issue.
Remember that you need to add the libraries in C:\arduino-1.5.3-Intel.1.0.4\libraries or the location where you have the software and folders.
Regards;
CMata