Users cannot save to home folders

We are running Active Directory on Windows Server 2008 Enterprise. We have one drive on our NAS unit (running Windows Storage Server 2003) set up solely for users' home folders, and I discovered today that non-administrative users were able to view and access files in OTHER users' home folders. Obviously that cannot be permitted...the problem is that my predecessor did a horrible job setting up the AD structure...there are only 2 major groups: "Domain Admins" and "Domain Users", both of which are built-in containers. Members of the Domain Admins group have full control of all files and folders, while members of the Domain Users group are limited. I removed the Domain Users group from the share permissions on the Home Folders share, then assigned each user individually full control of folder, subfolders, and files on their Home Folder. However, now all users can access files, but cannot save. The error message every time a non-administrative user tries to save to their Home Folder reads "[File path] You don't have permission to save in this location. Contact the administrator to obtain permission. Would you like to save in the [User Name] folder instead?"

However, the [user name] folder listed IS the user's Home Folder, so if they click Yes, nothing changes. I have been working on this for several hours now and I have no clue what else to try!

NEW INFO: I also just discovered that each user's Home Folder is set to read-only. I can go in and uncheck it, OK the "unset read-only" and it will appear to work, but the very next time I open the folder properties, it shows read-only again.