Yes, I think I might have one idea that might be causing this.

First of all, I'm going to assume that this is NOT a permissions issue,
since you are the creator of the Office Live account, so you automatically
get Owner permissions on everything. But if you are having this issue with
one of the accounts you added in the Users & Permissions section of Account
Management, then it's possible they don't have the permissions to create new
folders (they need to at least have the Editor permission for that Business
Application).

Did you create a brand new Windows Live ID for this? And do you normally use
a Windows Live ID on your machine for things like Live Messenger or Windows
Live Mail? Also, are you a Vista user?

If that's the case, your machine caches the credentials and would try to use
these cached credentials to log into Office Live Workspace when using the
WebDAV mini-redirector (or the full legacy WebDAV client) - which is what
gets used in things like Open dialog boxes or Windows Explorer.

If you indeed created a new Live ID account, the cached Live ID account
isn't authorized to access the workspace (unless, of course, you added it as
one of those 5 accounts that are allowed to use the workspace - which is one
way to remedy this - but then you waste an account).

I was having somewhat similar issue, so I had to clear the cached
credentials - which could fix the problem entirely, but it might interfere
with other things that utilize the Live ID / Passport credentials on your
machine.

So first thing you should do (if this applies to you - that is, if you did
indeed create a new Live ID for your Office Live Small Business account) is
clear the cached credentials.

Open your Advanced User Accounts Control Panel - easiest way of doing this
is by typing "control userpasswords2" in the Run or Start Menu search box and
hitting Enter. You might get a UAC prompt in Vista, so accept if necessary.
Once it loads, click the Advanced tab and click Manage Passwords button.

Once the Stored User Names and Passwords dialog box opens, scroll down and
delete all the entries *starting* with Passport or WindowsLive and hit close.
You can also back things up just in case with the Back Up button before
making the deletions.

Once you've cleared the credentials, restart your machine and attempt to
create the shared notebook from OneNote once again. This time, you should be
prompted for a user name and password - enter your Live ID credentials, check
"Save Password" and you should be good to go.

Now, as I said, this may screw things up - I'm not sure whether and/or how
this interfaces with Windows Live Sign-in Assistant (a pretty useful
component that gets installed with Windows Live Messenger - which allows you
to store credentials for multiple Live accounts).

Anyhoo, if it works OK in the beginning, but then messes up later on, then
you know it's related to Windows Live ID credential caching. If this solution
doesn't fix it, then it's probably something else - so please get back and
let us know either way.

Now, if it DOES work at first and gets messed up - which means it has to do
with multiple Live ID credentials being used in your user account, and the
wrong cached credential being supplied to Office Live - then there are TWO
possible solutions.

The first one would be to either create an Office Live Small Business
account that is associated with your main Live ID that you use for Hotmail,
Messenger, etc.

The second one would be to simply add your main Live ID account that you use
for other Live services as one of those 5 users authorized to access your
Office Live workspace (and give it the appropriate permissions in Office
Live).


Hopefully that wasn't too much info... was trying to cover all
possibilities, lol.

Good luck, and let me know where you stand.


Tom



"RSlaton" wrote:

> It seems so close to working but right after it asks if I want to create the
> folder it errors and says OneNote was unable to create the folder. I guess
> there is some sort of permission problem somewhere, but it's getting real
> late, I'll have to look at it more tomorrow. Thank you so much though for
> pointing this out, it seems very useful for a number of ideas I have. I think
> tomorrow I'm going to see if I can get Windows to map a drive to the
> documents folder, maybe that will make the permissions a bit more straight
> forward. Any ideas?