If you have SCE installed, and use its' ACL editor to set permissions on a partition that contains the system files, you may receive:

        Unable to save permission changes on C:                                      Not enough storage is available to process this command.
OR
        Unable to save permission changes on C:                                       The parameter is incorrect.
The error is caused because a record can not be added to the Application event log.

The file permissions are properly updated.

If the event log was able to be written, a typical entry might look like:

   Event Type:     Information                                 Event Source:   AclPropagation                                 Event ID:       4096                                 Description:                                 ACL Propagation encountered errors on the following file system directories:                                 C:\WINNT.4\system32\CertSrv\CertControl         The DACL was protected.                                 C:\WINNT.4\system32\CertSrv\CertControl\alpha   The DACL was protected.                                 C:\WINNT.4\system32\CertSrv\CertControl\x86     The DACL was protected.                                 C:\WINNT.4\system32\CertSrv\CertEnroll          The DACL was protected.                                 C:\WINNT.4\system32\config                      The DACL was protected.                                 C:\WINNT.4\system32\dhcp                        The DACL was protected.                                 C:\WINNT.4\system32\drivers                     The DACL was protected.                                 C:\WINNT.4\system32\drivers\etc                 The DACL was protected.                                 C:\WINNT.4\system32\LLS                         The DACL was protected.                                 C:\WINNT.4\system32\viewers                     The DACL was protected.                                 C:\WINNT.4\system32\wins                        The DACL was protected.
The SCE causes the event log record to exceed the maximum allowable value of 32 KB, which is why it could not be added.