Vista is unable to Rename/Move Files/Folders on a network drive

Upon installing a new PC on a SBS2008 domain, the following symptom showed up when trying to save, rename or move files and folders on the network drive.
“The “\\servername\sharedfolder” does not exist. The file may have been moved or deleted. Do you want to create it?”
I was able to create a new folder or file, but could not rename it. I could also delete the folder or file.
The problem appears to happen with new PCs, possibly caused by the way the vendor packaged the OS.
A resolution was to turn off Offline Files Synchronization from the control panel.
I also needed to create a DWORD value named FormatDatabase with a value of 1 in HKLM/system/currentcontrolset/services/csc/parameters.
Reboot, and problem solved.

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