Cannot Create Folder at Top Level of Documents Library

Question

Operating System:  Windows 7 Enterprise, 32-Bit
Environment:  Windows 2003 domain
Security:  Local Machine admin, and domain admin
Documents Library is redirected via Group Policy to
\\servername\home\username
Navigating to Libraries\Documents, there is no "New Folder" button available at that top level of the library.  When using File menu => New => Folder, I get "Unable to create the folder 'New Folder'   File system error (512)."  
Looked that one up using Google, er, I mean Bing, and found articles about it being an old DOS\Win95 issue with the 512 max limit on the root drive.  Am familiar with that problem, and this ain't it. Less than 30 folders at the root level, and none more
than 20 characters long. 
From inside an Application, if I try to save to my Library\Documents folder, I cannot save a file to the root level.  I get "To save here, you must first include a folder in the Library."
At this point where I am looking to save a file, I also cannot type a folder name for navigation, as I am used to doing with previous OS's.  So in my address area, I have Libraries\Documents, then I have a subfolder called "important."  If I type
the word "Important," expect the system fo navigate down into that folder.  Instead I get "To save here, you must first include a folder in the Library." If I type "Important\" I still get the same error.
Navigating to \\servername\home\username, I am able to create a New Folder at the top level from a Windows Explorer window, or from inside an application such as Word. 
Mapping a drive letter to \\servername\home\username also will allow me to create a New Folder at the top level, from a Windows Explorer Window, or from inside an application.
From a command prompt, I am able to get to the drive letter and create a new folder. 
With the drive letter mapped, going back to Libraries\Documents, I am still unable to create a new folder that way.  
I read these two threads, both of which sort of die off with no real answers.  So I've started my own. 
http://social.technet.microsoft.com/Forums/en-US/w7itpronetworking/thread/4ea2f28f-8487-40cf-abb0-745916e72b7a
http://social.technet.microsoft.com/Forums/en/w7itprosecurity/thread/ae2505ce-8a6b-493b-9473-a0dca215fd34
Any Help? 

Answer 1

Hi,
Regarding your problem, it seems that the user didn’t have appropriate permissions to create folders. To get it work, NTFS and Share permissions must be configured
appropriately.
Here are the Share and NTFS Permissions needed on the File Server Shares and the steps to do so:
NOTE: The $ symbol should be used to hide the existence of the share.
User Home Share Configuration:
Here are the Share and NTFS Permissions needed for Home Directories:
a. The Share permissions (Sharing Tab): Share Named: <HOME>$
Administrators: Full Control
System: Full Control
Authenticated Users: Full Control
b. NTFS Folder Permissions (Security Tab): Turn off inheritance on the Folder named <HOME>, and copy the permissions. (Uncheck "Allow inheritable permissions
to
propagate to this object")
Administrators: Full Control
System: Full Control
Creator Owner: Full Control
Authenticated Users: Read & Execute, List Folder Contents, Read
c. On the NTFS Folder Permissions Click the Advanced Button. Then highlight Authenticated Users, Select View/Edit
d. On the Permissions Entry for <HOME>, "the Apply onto" change to: "This folder
only"
e. Click OK
f. Click OK again.
More reference, please read the following document:
Windows Server 2008 Share/NTFS permissions on home
directories/folders
Redirect the Documents folder to a network share
Please note: we provide the third party link for technical use
only. There may be some changes without notice, Microsoft doesn’t guarantee any accuracy on contacting information.
BTW, as this issue is relevant to Windows Server 2003, please post in
Windows Server forums for solution as well.
Hope it helps.
Best Regards
Dale
Please remember to click “Mark as Answer” on the post that helps you, and to click “Unmark as Answer” if a marked post does not actually answer your question. This can be beneficial to other community members reading the thread. ”