I rechecked and I didn't uncheck any other boxes. I fact I also tried checking Directory Browsing for the TestFolder folder with no success. There must be some other setting that I'm missing.

You need to go into windows explorer and add the internet guest account to the security tab on the folders to which you want to transfer or delete files. Specifically, you need to check the Modify check box. Adding the permissions at the virtual directory does not necessarily translate to the file system on the hard disk. Once you do this you should be able to move the files and delete them.

Thank you very much twh7. I have been away for a couple of months but tried your suggestiopn today. Worked like a charm.

Thanks again.