Windows Server 2003
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See screenshots attached.
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have you checked the acl's on the folder






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I never could understand the share permissions logic... seems counter-intuitive to have permissions in two places and set share permissions to everyone/ full control while setting security to something else - what's the point in that?

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Windows Server 2003
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Windows Server 2003 was based on Windows XP and was released in four editions: Web, Standard, Enterprise and Datacenter. It also had derivative versions for clusters, storage and Microsoft’s Small Business Server. Important upgrades included integrating Internet Information Services (IIS), improvements to Active Directory (AD) and Group Policy (GP), and the migration to Automated System Recovery (ASR).