Fyi, I can confirm this happening in Windows Vista (Business) and Windows 7 Professional in WORKGROUP mode (as both a client and a server). I am not totally sure if this is a Superuser question or a ServerFault question.
So there's a Client PC and Server. Both machines have a user account with the same password. Both client and server have the same private/public key pair for EFS. Server shares a folder with the User given full permission. Also locally, the user has the full permission on the folder. Now the user on the client PC connects to the folder on the server, and everything works totally fine. I can read, write and delete files, and create/delete folders on the share.
Things go weird from here. I encrypt the folder on the server. I can delete and modify files fine (so the files decrypted OK). However the user from the client PC cannot create a folder or create a file - getting Access Denied. But this Access Denied is very special.
- It takes over 10 seconds on the client to receive the error and the explorer freezes while trying to create a folder, eventually returning error.
- On the server, I can watch the folder created at the same time, and what I see is "New Folder" blinking like crazy and eventually disappearing when the client receives the error. i.e. it's created and deleted in a really rapid manner.
What I do not understand is that permissions look fine, I can modify/delete files, and it looks like there is no problem with EFS because I can read/write files fine. Yet it fails to create a file or a folder.
Any help is appreciated.