Weird file renaming permission issues

Question

Hi!
We have a file rename permission issue. Here is the background:
We created a 2008 R2 DFS namespace called UserData with Read/write share permissions for Administrators, Everyone and System. UserData has been granted NTFS permissions as follows:
Everyone (This folder only): Traverse folder / Execute files, List folder / Read data, Read attributes, Create folders / Append data
CREATOR OWNER (Subfolders and files only): Full control
SYSTEM (This folder, subfolders and files): Full control
Domain Admins (This folder, subfolders and files)
We then enabled folder redirection for users My documents folder through GPO, setting the following:
Setting: Basic - Redirect everyones folder to the same location
Target folder: Create a folder for each user under the root path
\\domain\UserData
We also unchecked Grant the user exlusive rights to documents.
So, now to the really weird behaviour. We logged on to a Windows 7 (x64) client computer with a user who gets this GPO settings and that is not local administrator on the client. The folder is redirected as expected and we can create, delete and write to
files in anyway we want. We can also rename files if we choose an entirely different name and if we choose a longer or a shorter file name,
but we cannot rename the file to something with the same letters but different casing.
Examples of what will work:
"test" to "testing"
"test" to "cool"
"test" to "COOL"
Examples of what will NOT work:
"test" to "Test"
"test" to "tesT"
"test" to "TEST"
We the get this error: "File Access Denied. You need permission to perform this action. You require permission from S-1-5-21-220..... to make changes to this file."
Eventhough I'm pretty sure the share and NTFS permissions of the share are correctly set we have of course checked all the permissions when logged in and the user has Full NTFS control and Read/Write Share permissions.
We have encountered the same problem on a customer company as well, with a different domain with no links to our domain what so ever. I have also seen similar problems from other people when trying to find the answer on internet. Here is an example:
http://social.technet.microsoft.com/Forums/en/w7itprosecurity/thread/35ced5bb-ab13-4e28-8c48-7c68ce0b775c
Anyone have any thoughts?
/Leyan

Answer 1

Resent discoveries:
If I log onto a Windows 7 (x86) Enterprise I face the same Issues.
If the same user logs on to one of the DFS servers holding the namespace and accesses his folder we experience
no problems renaming files.
Customer company states that all is working fine when user logs on to a Windows XP with SP3.
/Leyan