This one was driving me up a wall. There's tons of hits on Google, but nobody had an actual answer.
To reproduce the problem, copy some files from another computer to the network file share on your Vista box. This could come up frequently during a Vista migration.
In my situation, I transfered a directory to d:\vmdisks\vmName1
Next, attempt to modify one of the files with notepad. You can tell the file is protected, as notepad will claim the file is no longer present when you attempt to save it. (This is supposed to happen for any files under \Program files and \Program Files (x86))
Also, if you attempt to remove the read-only attribute from one of the copied files, you will be prompted by UAC to approve, and Vista will report the operation was successfull. Closing the properties window and reopening it will show the...