Offline files - access to .... is denied. What's up with that?

a laptop (7 months old) is set with a shared folder from another xp machine in an SBS domain.  things have been working fine for 7 months.  

Now, if the user makes / edits a file when offline, then brings the laptop back in the office, they sync and get an error:  'offline files [file name]: access to [file name[ is denied on [share path]

I've reinitialized the offline files (control shift & click on the delete offline files in the offline files settings page.

I've turned off and turned back on offline files.

I've created another share on the same other desktop down the hall, checked permissions (share is full cnotrol  and the folder security is full control) and had the same results (so the problem isn't with that first share

I've created another share on a different  desktop down the hall, checked permissions (share is full cnotrol  and the folder security is full control) and had the same results (so the problem isn't with the shared PC).

any files made / changed when offline do not get sent up to the PC that's sharing the folder (so the local version is newer).  and when I look at offline files list, I do see that - it says 'only local file exists'

thank you!

it looks like there's a problem with this desktop.  any ideas? there's loads of people on the web talking about this, with either no resolution or reinstalling the OS / apps as their solution.  I really don't want to have to do that.
babaganooshAsked:
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TimBarrettCommented:
Offline files has a limit of 2 GB in XP. How big is the shared folder? Also, have you checked this KB:
http://support.microsoft.com/kb/275461/en-us
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