When you perform the subject operation, the folder is copied but its' files are not.

This is caused by a bug in Windows 95, that can also affect server based profiles.

To resolve the issue, download:

      SYNCENG.DLL     version 4.00.951     dated   7/16/96     55,296 bytes

See http://support.microsoft.com?kbid=161020 - Implementing Windows 95 Updates