I recently set up a home directory on the server for a new user, shared the folder, and configured the user's profile to map drive letter G to the shared folder. However, the user can't create or change any files in the folder, despite the fact that she has Modify permissions. This is the first time I've set up a home directory for a user since upgrading the server to Windows Server 2003. What gives?
There's an easy solution. Although you configured the permissions on the folder's Security tab correctly, you need to keep in mind that shared folders are subject to an additional ACL. On the folder's Sharing tab, click Permissions to open the dialog box in Figure 1 (page 16). Share permissions limit the actions you can take on any file or folder accessed through that share, regardless of the permissions defined on the object's Security tab. On Windows 2000 Server, the share permissions on a newly shared folder granted Full Control to Everyone. On Windows 2003, the default changed to Read permission for Everyone. Simply change the folder's share permissions to Full Control for Everyone, and you'll solve the problem.
Don't worry about making this change. When you set share permissions to Full Control for Everyone, you aren't opening the folder up to everyone, you're just factoring the share permissions out of the equation so that Windows enforces only the permissions defined on the Security tab of the folder and its files.