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Access to folders via groups in AD

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I have created a global group in AD, lets call it MemberGroupFolder.
And I have created a Domain Local Group, FolderAccessGroup in AD.

The MemberGroupFolder is a member of the FolderAccessGroup

I have given full access rights to the Folder to FolderAccessGroup, and if I check the “Effective Permissions” in the Advanced section of the Security tab, I can see that my user has all the rights necessary to create folder, files and modify all the content of the given folder.

But when I try to create a folder, I get an error messages that states “Cannot create “FolderName”. No Access”

The domain runs in windows 2000 native mode, but I thought it was suppose to handle nested groups. What am I forgetting?

If i put the members directly in the FolderAccessGroup, they do get access, but not if they are in the MemberGroupFolder.

Any good suggestions?

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