Index: lams_central/web/lams_authoring.swf
===================================================================
diff -u -reaa9b5ca1c61bf87f01ef2edbb3362a1b1a85115 -r60e8ee7490502e0d9338ed1958ec14a57dfc043c
Binary files differ
Index: lams_central/web/lams_authoring_library.swf
===================================================================
diff -u -r27b27d09f51f60c9b0ec71d0054573427debc973 -r60e8ee7490502e0d9338ed1958ec14a57dfc043c
Binary files differ
Index: lams_flash/src/common/flash/org/lamsfoundation/lams/common/ws/WorkspaceDialog.as
===================================================================
diff -u -r76462577506141913c7c593f6dab92a5651ffd76 -r60e8ee7490502e0d9338ed1958ec14a57dfc043c
--- lams_flash/src/common/flash/org/lamsfoundation/lams/common/ws/WorkspaceDialog.as	(.../WorkspaceDialog.as)	(revision 76462577506141913c7c593f6dab92a5651ffd76)
+++ lams_flash/src/common/flash/org/lamsfoundation/lams/common/ws/WorkspaceDialog.as	(.../WorkspaceDialog.as)	(revision 60e8ee7490502e0d9338ed1958ec14a57dfc043c)
@@ -815,11 +815,17 @@
 		} else if(snode.attributes.data.resourceType==_workspaceModel.RT_LD){
 			if(snode.parentNode != null) { 
 				if(searchForFile(snode.parentNode, resourceTitle_txi.text, true)) {
-					//run a confirm dialogue as user is about to overwrite a design!
-					LFMessage.showMessageConfirm(Dictionary.getValue('ws_chk_overwrite_resource'), Proxy.create(this,doWorkspaceDispatch,true));
+					var snodeData = treeview.selectedNode.attributes.data;
+					var isWritable:Boolean = _workspaceModel.isWritableResource(snodeData.resourceType,snodeData.resourceID);
+					if(isWritable) {
+						//run a confirm dialogue as user is about to overwrite a design!
+						LFMessage.showMessageConfirm(Dictionary.getValue('ws_chk_overwrite_resource'), Proxy.create(this,doWorkspaceDispatch,true));
+						_workspaceController.clearBusy();
+					}
+					else // don't have permission, file is read-only
+						LFMessage.showMessageAlert(Dictionary.getValue('ws_no_permission'),null,null)
 				}
 			}
-			_workspaceController.clearBusy();
 		} else if(snode.attributes.data.resourceType==_workspaceModel.RT_FOLDER){
 			if(snode.attributes.data.resourceID < 0){	
 				LFMessage.showMessageAlert(Dictionary.getValue('ws_save_folder_invalid'),null);
Index: lams_flash/src/common/flash/org/lamsfoundation/lams/common/ws/WorkspaceModel.as
===================================================================
diff -u -rba9b21831a72a6e3fbfa8bfbf9aae3b25b4786e5 -r60e8ee7490502e0d9338ed1958ec14a57dfc043c
--- lams_flash/src/common/flash/org/lamsfoundation/lams/common/ws/WorkspaceModel.as	(.../WorkspaceModel.as)	(revision ba9b21831a72a6e3fbfa8bfbf9aae3b25b4786e5)
+++ lams_flash/src/common/flash/org/lamsfoundation/lams/common/ws/WorkspaceModel.as	(.../WorkspaceModel.as)	(revision 60e8ee7490502e0d9338ed1958ec14a57dfc043c)
@@ -278,7 +278,7 @@
 	 * @param   dto 
 	 * @return  
 	 */
-	public function setFolderContents(dto:Object, openFolder:Boolean){
+	public function setFolderContents(dto:Object, openFolder:Boolean){	
 		var nodeToUpdate:XMLNode;
 		Debugger.log('looking for:Folder_'+dto.workspaceFolderID+', parentWorkspaceFolderID:'+dto.parentWorkspaceFolderID,Debugger.GEN,'setFolderContents','org.lamsfoundation.lams.WorkspaceModel');
 		_global.breakpoint();
@@ -496,18 +496,23 @@
 	public function isWritableResource(resourceType,resourceID){
 		var rData = getWorkspaceResource(resourceType+'_'+resourceID).attributes.data;
 		Debugger.log(resourceType+'_'+resourceID+'has permission code:'+rData.permissionCode,Debugger.GEN,'isWritableResource','org.lamsfoundation.lams.WorkspaceModel');
+		
 		if(rData.permissionCode == READ_ACCESS){
 			return false;
 		}
 		if(rData.permissionCode == MEMBERSHIP_ACCESS){
-			if (resourceType == "Folder")
+			if(!rData.readOnly) { //if the file folder is writable
+				if (resourceType == "Folder")
+					return true;
+			}
+			return false;
+		}
+		if(rData.permissionCode == OWNER_ACCESS){
+			if(!rData.readOnly)
 				return true;
 			else
 				return false;
 		}
-		if(rData.permissionCode == OWNER_ACCESS){
-			return true;
-		}
 		if(rData.permissionCode == NO_ACCESS){
 			return false;
 		}