On this date, Tim Slattery extended this wisdom for the
consideration of other readers...
The "Read-only" attribute is meaningless for folders. What
you are seeing is a "three-state" checkbox in its third
state: grayed-out with a check. It's trying to tell you
that the option doesn't really apply here.
That's entirely true, except that you /can/ change it, albeit
only momentarily, by opening a "DOS" window and using the old
fashioned attrib command, which also works in /all/ the places
where Windoze GUI refuses to respond to the users request to
clear a read-only, hidden, or system attribute bit.
The reason this is important, is that Windoze XP Pro SP1
/regularly/ refuses to allow me to change folder names even
though I clearly have full admininstrator rights. Usually, it is
the bullshit message something to the effect "access denied or
this device may be in use by another program". A quick trip to
"DOS" and the deed is done.