Can't copy local profiles???

Hey Guys,
What the hell am I doing wrong? Had to do a completely new install of a
Windows 2003 standard edition box and transfer a botched up ole NT-4 single
domain of users and machines to this new box. No migration tools, the
permissions were too disorganized. I joined the mix of win98,winme,w2x,xppro
machines to the new 2003 domain.I created all the existing users from
scratch.The problem is I cannot transfer any of the local user profiles from
their machines to the newly created shared \\servername\profiles\ directory
without the following error. "Failed to Set Security on the Destination
Profile. Error -access is denied." I set the permissions on the shared
"Profiles" directory to "Full" for everyone. I log into the local machines
with another local administrator account and then proceed to "My
Computer>properties>Advanced>UserProfiles Settings
>copyto> full UNC path>permitted to> then log into 2003 as administrator and
>get that message "Failed to Set Security on the Destination Profile.
>Error -access is denied." What the hell am I doing wrong! Is their another
>way around for me to copying the local profiles to the server? Would also
>like to apply these profiles only to the machines they existed from. The
>endusers own their own win2x & xp systems. Humbly appreciate any feedback.
>Thank you.

Joey