As you say, FAT has no security.

MS's technet is less than helpful, as I assume you know....

[link|http://groups.google.com/groups?hl=en&lr=&threadm=GED37C2716F%401st_NAME.Lst_NAME%25village.uunet.be&rnum=5&prev=/groups%3Fq%3DFAT%2520%2520access%2520denied%26hl%3Den%26lr%3D%26sa%3DN%26tab%3Dwg|Here]'s a thread in comp.os.os2.apps that talks about problems deleting a FAT file on OS/2. Maybe something similar's going on on the 2K Server.

Maybe Norton DiskDoctor or the like can check things out for you.

HTH.

Cheers,
Scott.