very odd access denied error for write permissions

Hi everyone, interesting problem here.

Setting:

Win 2003 server
Clents: Win98se, Win2000, WinXP Pro
One domain, 2 main OUs, 4 sub ou's under each, several under the last layer.
No nested groups.
All on one site, same subnet

Nothing is denied for any group for file sharing permissions.
Default domain policy is unmodified except for password settings
No other policies are in effect security wise.

At the root drive level, I created an additional share for the
Administrators group, called LES-SrvProgs$.

The following software is installed on a drive that has one folder shared in
the root directory. This folder is called "LES- Server Programs$". There are
two other folders under that directory, one called "Faculty" and one called
"Student". Under the Student folder are three folders, one being "Kid Pix".

The software I installed locally onto the server is a 50 user Network
version of a program called Kid Pix. It has a windows intaller package that
you run for each workstation to install it onto each client machine (from the
server intall that is). The client program on the machine also works with
folders located on the server.

The user belongs to a group called "LES"

I set the default access to read under the share permissions LES. Everything
is inherited down through.

I logged on as a user and tried to install the kid pix program onto a
workstation and I got an access denied message from the program itself. So at
the Kid Pix folder level itself, I set security permissions for modify, and
then tried it again. To no avail.

I added the write permission and tried again, to no avail.

Logged on as the user, I tried from the command line at the workstation, to
do a "dir > contents.txt". Access denied.

I logged on as Administrator, and got access denied trying the same dir
command.

Removed all the shares on the drive except for the default. I then added a
new share, named as above. I replaced the permission entries for the
subfolders and tried the "dir > contents.txt" command again as an
Administrator. It worked fine.

I readded the LES group with read sharing permissions, and the program
wouldn't install. I re-added the modify and write permissions to the LES
group at the topmost level and then tried it also at the folder level. I even
tried full control and sharing that folder itself (kid pix) and then I also
tried blocking inheritance and setting it at the folder level.

Logged on as "Betty", with full permissions enabled and no denies, I still
get access denied with "dir > contents.txt" and the program will not load
either.

Logged on locally to the server, "Betty" can execute the dir > contents.txt
fine,with NO access denied.

Information overload for the problem description I know, but I wanted
everyone to see what I have done.

Any ideas why Access denied is happening for the group LES and user Betty
when logged onto a client machine?

thanks for the help.
--


Steve D.
Computer Tech
Somewhere in Vermont