You will get this error message if you are running an older version of Kaspersky Anti-Virus software (pre windows vista). I have 2 computers in my shop. One is running Vista Ultimate and one is running XP Pro. When I tried to copy foles from the XP compute to the Vista computer I got destination folder access denied. I removed Kaspersky Anti-Virus and it resolved the problem. Apparently Kaspersky add some signature to the files that prevent them from being copied from and XP system to a Vista system.
Hope this helps you out
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