System policy problem

the default permissions for this folder (share) are "everyone" = "read"

Give Domain Admins "full control" and you should be dancing :)

If you log on locally at the PDC you should not have any problem saving to the NETLOGON Share.
The other point with policies is that you need to copy them to the NETLOGON share on the BDC's as well. You could use the Directory Replicator, but because its so flakey most people user the Resource Kit's Robocopy, or just plain copy the NTCONFIG.POL file. This is wheen you need to change the permission to Administrators Change or Full Control.
Tip when you first create System Policies use a test user and a test machine. If you use the default computer and default user it can be difficult to reverse changes.

To Network ops,
I don't know if i misunderstood your statement that says, "which all sources say needs to be copied to the NETLOGON folder on the PDC" and then, "when I go to copy the file, I get an "access is denied" error, that the disk is write-protected or already in use.". No offense, that it seems that you do not have any Administrator Account at all that give you the exact ACCESS DENIED prompt.
You see, In an NT Network, creating a policy is too simple even a janitor can do it, and then you SAVE the file, i repeat, SAVE, not copy it as you said.
Anyways, if you want a few tricks on how to do it, just read on.
Open Policy Editor
Double click the ACCOUNT you want to modify,
Modify the ACCOUNT,
Save the modified account to the NETLOGON FOLDER.
Now, if you cannot even get into the PDC's Netlogon folder, its assumable that you have no administrator account to do this.

jun

This is the directory you should save to:
\System32\Repl\Import\Scripts.

Don't forget to copy to the BDCs as well or to use the Replication service.

DLe is right. The Netlogon share is \system32\Repl\Import\Scripts. And if you activated the Replication service (what I urge if you have BDC), copy your file to REPL$\Scripts which is \System32\Repl\Export\Scripts.
Of course you have to be logged on as an administrator (for both folders).

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