same thing happened to me!
this error also happened to me, when i...
wanted to enable profile roaming in xp professional so that samba server will have a copy of my profile.
all the following is adapted from the Samba How-to guide (whose directions assume a different configuration than my machine has):
logged into local machine as admin, right clicked my computer, properties, advanced, settings, selected username, copy to, change, locations, [mydomainname], OK, "everyone" in object field, OK, type in root & root pwd, OK, browse, [path to my server's profiles folder], OK, OK, "Yes" to any warnings.
then.... this error message... "failed to set security on the destination profile" access denied.
