File will not go off stationery pad

In our law firm, the server (10.4.4), we have set access to read/write access so staff can open client files/folders, edit then and close, etc. That seems to be working okay. Before the tech worked on permissions, if someone created a letter another staff member could open it, but it was read-only.
The problem we are having is that if a file that is clicked on stationery pad and we want to edit it, it will not allow us to. For example, if we need to edit our letterhead that normally comes up as an untitled document, if I unclick the stationery pad box, it unclicks, but it still comes up as an untitled document. I even tried to unclick a stationery pad on a document that I created before the server upgrade and it wouldn't let me.
If I create a brand new document and put it on stationery pad, it comes up untitled as it should. If another user on another desktop wants to make changes, they unclick the stationery pad box, but when they open it, it comes up untitled and in checking get info, the stationery pad is selected.
The tech set it up as follows:
Share Points and All tabs:
General tab: box to share this item and its contents is clicked
Access tab: owner, group and everyone have read/write privileges
If select dial at bottom to propagate permissions, all boxes are checked, except for access control list, which is shaded.
I cannot drag/add anything to the control list and the pencil and the minus sign is shaded
Protocol tab: Both boxes, share item using AFP and Allow AFP guest users are clicked. But for better security in reading the article, this should be unchecked.
Also under the protocol tab: the inherit permission from parent radio dial is clicked, not the use standard POSIX behavior.
What are we missing?
Thanks, Cheryl

My backlight stays on the whole time while charging as well - even after charging for more than 2 hours. (My setting is set for the backlight to turn off after 5 seconds.) The backlight stays on all throughout charging - the screen repeatedly flashes a big red circle with a slash through it saying "Do not disconnect." The charging battery icon appears very small in the upper right corner of the screen.
I have tried exiting iTunes before or while charging, which doesn't seem to help either.
Any suggestions as to how to get my backlight to turn off while charging? It is very annoying, and logic dictates that the ipod would charge faster if the backlight was not on.
2005 IBM Laptop   Windows XP  

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