Hi - Have you found a fix ?
I had exactly the same problem, but have now worked it out - difference was that mine was associated with an additional drive I have and have my documents pointing to the d: not the normal c:\doc and settin...blah

If I moved any file on the D: hard drive I got the access denied - when looking at the files, all thier permissions had basically been stripped, but this was the default permissions on the D: root .... after copying the explicit permission set from the C: root to the D: root (you have do do it manually and in safe mode on XP Home) the problem then went away ....

Regards,

Nick