Host Computer: Windows XP Professional SP2 with latest updates (well, almost latest, I just need to install some updates, probably unrelated with networking.) (I had the same problem with Professional SP1)
Client Computers tested: Windows XP Home Edition SP1, Windows XP Professional SP2, Windows Vista Ultimate Build 6000.

All client computers have the same problem: Certain files (mostly EXEs, but I have seen it happen with other files too) can't be accessed by the other computers.
It just says "Access is denied."

I have set full permissions on the shared folder from the host computer.
I have also tried disabling SFS (Simple File Sharing) and set full permissions for every user there, but it still doesn't work.

I can access the file though when I move/copy it to the root of the shared directory (the non-accessible files where in subfolders of the shared folder).
However, i have seen this happen with files that are in the root of the directory...


Anybody knows a permanent fix or what causes this?

I suspect that you are having trouble with the way Windows handles NTFS permissions when you move files.  Permissions on an object (folder or file) are inherited from the parent folder when the file is created.  However, when an existing file is moved to a different folder on the same volume, the original permissions are retained.  Your files were probably originally created in a folder with more restrictive permissions (perhaps under "My Documents"), then moved to the shared folder.  That could result in the problem you describe.

With Simple File Sharing disabled, you can quickly fix it by resetting the permissions.  Right click the shared folder, Properties, Security tab, Advanced, tick the box to "Replace permission entries on all child objects..." and Apply.  You will be prompted to confirm and permissions on everything in the folder will be reset.

If you wish to change how Windows Explorer handles permissions when moving files, so that you don't keep running into this problem in the future, you can apply the second registry change described in this article. 

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Originally posted by Adeptus
With Simple File Sharing disabled, you can quickly fix it by resetting the permissions.  Right click the shared folder, Properties, Security tab, Advanced, tick the box to "Replace permission entries on all child objects..." and Apply.  You will be prompted to confirm and permissions on everything in the folder will be reset.

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