Yes, you are missing something. "Read Only" as an attribute applies to
files, it is ignored by the system on the folder level. In XP, it appears as
a grayed out attribute, so far in Vista it shows like any other attribute in
the properties of a folder. In both, it appears you can change it but you
cannot or it seems to revert on its own. This should be changed
programatically as the subject has been brought up now and then over the
years, but somehow I doubt it will be.
File a bug report as the more that get sent in the more likely it will
be cured. I had the same problem on my first installation which was an
upgrade. After doing a clean install it disappeared. Many others have
had the same problem. A clean install is not a guarantee but seems to
work for most from reports I've seen.
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