Really, are · Users: 2 user created by the user and the admin user (default) created by XP with the same password of the main user.

Download XP power Toys for enable (from the login) this user.

If the dir c:\OneDir\TwoDir is readonly, you check that c:\OneDir is NOT read only too?

Or try copyn the files to other dir, delete this dir, recreate and recopy (first check with a small file :)