Setting Permissions for a File or Folder
To set the permissions for a file or folder:
1. Use Windows Explorer to locate the file or folder for which you want to edit the permissions.
2. Right-click the folder, and then click Properties.
3. Click the Security tab.
4. To add a new access control setting to the folder, click Add.
5. Select the users, computers, or groups that this access control setting is applied to, click Add, and then click OK.
6. To remove an access control setting, click Remove.
7. To edit the permissions for any group, select the user or group, and then use the corresponding check boxes in the Permissions pane.
8. Click OK to accept the settings, click Cancel to cancel any changes you have made, or click Apply to apply the changes without closing the file or folder properties.
http://support.microsoft.com/kb/324067/en-usYou must do this with an administrator level account.
Network permissions set by a domain administrator override any local settings, so if you are a user on a domain the network admin's settings will overrule yours.
Do you have Win 2 K set up with NTFS or FAT32?
Some security options are not available using FAT32.