Use code tags to ensure your code is formatted correctly. Here is your code nicely formatted:

$sourcedir="J:/sortdata/sortsafe/probers/prbrsort/EG_ROOT/PRODUCTS"; 
$timestamp=($targetdir.$date); 
mkdir ($timestamp) || die "Cannot mkdir $targetdir: $!"; 
@args = ("xcopy $sourcedir $timestamp"); 
system(@args) == 0 || die "Cannot xcopy @args";
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What error are you having? How do you set $date? Check out System for details of how to call system What you are doing is fine and dandy but I believe the intent is ("xcopy",$sourcedir,$timestamp). Does anyone else know why this is and what difference it makes?

I would recomend printing @args and try running the command by hand to see if your command is correctly formatted.
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Zigster