That's because "read only" as an attribute only applies to files, not
folders. This is a common misperception, and you can read more on it here: http://support.microsoft.com/kb/326549/
"Read only" as an attribute does not apply to folders, only files, which is
why you could not change it (although you can seemingly uncheck it, it's
actually greyed out). It appears because a folder has been customized, but
is actually meaningless.
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