XP Home eddition file sharing problem

I as the administrator am having problems with file sharing and access. If I create a file and put it into a folder by dragging it into the folder, I am not able to open the file or even see it. Get a file permission error. If I copy and paste files into folders I have no problems at all. Is there a fix for this problem? I cannot even delete the files or folders and the folders say they are empty. HELP!