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Thank you! I'll give it a try. I also figured out that if I create the folder on my desktop, reset the permissions, then drag it to the server it will accept the permission change. If the Combo Update does not fix the issue then I can use this as a work around.

I just upgraded to Snow Leopard, 10.6.5 on a brand new Mac Pro (quad core). I have to create shared folders on our shared server system and on Leopard I simply created a new folder and changed permissions for (group) Everyone to Read & Write using Get Info. No problems. Now when I create the...