File move fails with a “You Must Have permissions”

This used to work and now it doesn't - why has me completely baffled. 3 Servers Server A - Windows 2003, Server B - Windows 2003 Web, and...
File move fails with a “You Must Have permissions”
This used to work and now it doesn’t – why has me completely baffled.

3 Servers

Server A – Windows 2003, Server B – Windows 2003 Web, and Server C – Windows
2008
Server C is a Jobs and FTP server – It moves files around both internal and
external.

Server A is a DB server, Server B is an Application server. A job is setup
on Server C using "Automate" that detect activity in the Server A\Send2B
folder. It then scans the Server B\in folder for a file of the same name
and deletes it (the files are always named the same) if it exists. Finally,
it grabs the new file from Server A and sends it to the Server B\in folder.
The job fails either with no file deleted (Step 2) or no file copied (Step
5). To troubleshoot the issue, I log into Server C as a Domain Admin and
attempt to move the file manually – that is when I get the error in the
subject line. I check the permissions on the destination folder –
Administrator’s "Full Control". So I create another folder on Server B,
share it and try to move the file there – it works with no problem. I
figure something is wrong with the in folder so I delete it and recreate it.
Now the folder is new and is empty so I attempt to move the file logged into
Server C from the share on Server A to Server B. It fails again. But
wait – it gets better… If I rename the source file on Server A I can move
it no problem to Server B. I am completely at a loss as to why this is
happening. Another symptom that may be related. When logged into Server C
I can delete the file from the Server B\in folder (or at least it dissapears
from the folder). But the file is not actually deleted. If I log into
Server B I can see that the file is still in the "in" folder. I can delete
it locally no problem, but even when I delete it locally, I still cannot
copy the new file from Server A to Server B using Server C.

AARG!

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