I have tried from a couple of different fully-patched XP Pro SP2 workstations
to create subfolders / copy files to a Server 2003 R2 share on which I have
full NTFS & share permissions. After creating a folder or copying files, I
right-click on them, select properties, and when I select the Security tab, I
get the following error:
"The permissions on <folder> are incorrectly ordered, which may cause some
entries to be ineffective. Press OK to continue and sort the permissions
correctly, or Cancel to reset the permissions."
When I create the folders or copy the files and folders from a 2003 server,
I do not have this problem.
I searched and found KB article 899182, which indicated there was a hotfix
for this problem. Has this issue not yet been fixed?

Thanks
Tim