Error: Access Denied

Dear Experts,

Am new to system administration job. well... Am facing a problem when trying to create any files inside a folder.

Server OS: SBS 2003
Client OS: XP Pro

We run in a domain structure.

Prob: I have a folder(Test) which has couple of folders inside it and is shared and the sub-folders(Tst1, Tst2 .. etc) are not shared.

Share permisson for Test: Everyone: Read
Security permission for Test: Administrator: Full Control, Users: Read & Execute.

Sub-folders are not share and so I will not get share permission tab. Permissions under security tab: Administrator: Full Control, User1: Full Control, Users: Read & Execute. I clicked on Advanced tab and cleared the Allow inheritence from parent and when the secuirt alert came i clicked on remove button.

Now I logged in to the server as user1. Located to the share Test and accessed Tst1. When I tried to create a folder or a file it gave an error message saying: Access is denied.

I want only user1 to have full control on the folder Tst1 and rest of th users to get only read & execute permission.

Any help would be appreciated.

Thanks in advance

Sunoj