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March 2, 1999
You receive the subject error, even though you are logged on as a member of the Administrators Group.
You don't have any difficulty setting NTFS permissions (or auditing or taking ownership).
This problem is symptomatic of a missing or corrupt Acledit.dll from the %systemroot%system32 folder.
Copy the file from your latest Service Pack, other server (at same Service Pack level), or the installation media.
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