I'm having a problem with basic organization of my "Favorites" folder for IE. It won't let me move a folder to another folder. It looks to be a permissions issue so I tried to replace permissions on child objects for my "Favorites" folder. When I do it returns the following error:
An error occured while applying security information to:
-lists a folder within Favorites-
access is denied.
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It returns this error many times for several different folders within Favorites. I can only click ok or cancel for each instance. If I click cancel it returns a warning saying if I stop it from setting the permissions it will lead to inconsistancies for the security settings of that folder.
I am the owner and administrator. I've searched the net a good amount trying to figure this out and my head is about to explode. Hoping someone can lend some advice. Thanks in advance.

