Glad this worked for you! We were running into this problem when developing some apps and the icon file was beng used by the web (favicon) and a client... On the web side it was nt big deal since the icon would be 'unlocked' within the time out period for the app set in the web server, but we encountered that smart client apps would not be as forgiving.
Believe it or not, this happens all the time. Curiuosly this is a server issue, not a client issue - the server will flag the file as being used by a process, but will not do it if it is set to read-only at the file or priviledge level. I have found this hipcupp in various scenarios, including Novell, Windows, and even legacy Banyan networks - with all kinds of clients.
Just one of those hidden secrets on how things work and I think it has to do with concurrent reads and how the OS handles that.
-R!
Ricardo A. Parodi
eSolar, Inc.