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This is very strange, i have read/write permission set on that folder.
Can anyone advise me on anything?
quick question: what version of IIS are you running?
1. Creating a new file depends on the folder permissions, but
2. Deleting a file depends on the "folder permissions" as well as the "file permission"
You prob. need to check the permissions on the file that you want to delete.
If you have time, pls. read an article/tutorial on file permissions. It will prove most helpful in the long run.