I don't really know how to title this one. It's the strangest thing I've seen happen in a while and it is something that goes against every bit of logic I can think of. Here goes:
Computer A opens drawing1.dwg on the local server and keeps it open.
Computer B opens drawing1.dwg on the local server while computer A has it open still.
While computer B is in the process of opening the file, computer A tries to save the file. When hitting the save button, computer A gets a message stating that the file is now locked for use and no longer able to save. In the meantime computer B opens the file just fine and receives no warnings that it is opening a read only file - it just simply opens the file as if computer A never had it open in the first place. It's as if the permissions for the file are switched from computer A to computer B with no one knowing about it until it is too late. This happens whether it is over the LAN or WAN. This also seems to happen on *.dwg files as well and not other files. This situation has been tested on word and excel files and it does not seem to happen with them.
Computers are on XP pro, Server environment XP and the software is ADT 2006 w/ SP1 installed (please don't move to ADT forums - I believe this is an AutoCAD issue at heart and should be here in the AutoCAD forum unless you feel another one is more appropriate). Please let me know if you can shed any light on this confounding situation as I haven't a clue why this would happen!