
it only applies it to files inside, instead of the directory itself), but it's still the same attribute. Only newer Windows versions have changed what objects the checkbox will apply the attribute to (i.e. It doesn't the checkbox uses the same attribute. Note that I'm talking about the ReadOnly file attribute on a directory file system entry, which differs from the read-only checkbox displayed in the property window. The slower the network connectivity to the share the longer this process can take to the point where Explorer may timeout waiting for the data and render nothing or appear to hang. It has been seen where if a network share that has a large amount of folders set to Read-only, it can cause Explorer to take longer then what is expected to render the contents of that share while it waits on the retrieval of the Desktop.ini files. When a folder has the Read-Only attribute set it causes Explorer to request the Desktop.ini of that folder to see if any special folder settings need to be set. As a result, Windows Explorer does not allow you to view or change the Read-only or System attributes of folders. The Read-only and System attributes is only used by Windows Explorer to determine whether the folder is a special folder, such as a system folder that has its view customized by Windows (for example, My Documents, Favorites, Fonts, Downloaded Program Files), or a folder that you customized by using the Customize tab of the folder's Properties dialog box.

Unlike the Read-only attribute for a file, the Read-only attribute for a folder is typically ignored by Windows, Windows components and accessories, and other programs. MS KB 326549: You Cannot View or Change the Read-Only or System Attribute of Folders Windows Explorer uses the Read-Only attribute to determine whether or not the folder is customized. MS KB 256614 : Unable to remove Read-Only attribute from folder (This is enormously important on slow networks.)

For performance reasons, Explorer does this only if the directory has the +R or +S flag. If a folder has the Readonly or System flag set, then Explorer will look for a desktop.ini file which describes the folder customizations. It doesn't mean that the directory is read-only. It's actually a signal to Explorer to look harder. The Old New Thing: Why is the readonly property for folders so strange?

It has no meaning to the rest of the OS, and is used specifically as an indicator for Explorer to look for a desktop.ini file.
