Cause: You have authenticated to the remote computer using an authentication mechanism that does not support ADSI, so the credentials cannot be used to authenticate ADSI communication. This is the type of communication that is used to set or modify the Access Control List in some cases.
Solution: Close the application you are using.
Close all connections to the remote computer by typing net use * /d at a command prompt, then start the application that you are using to modify the Access Control List. This will force the application to perform a new authentication using the appropriate mechanism.
See also: Net use