The problem seems to be on any machines as long as the user don't have domain admin rights.

Other copy commands with %0/../ works just fine.

The ls.bmp resides in the netlogon directory.

I did not use quotes around the parameters: copy ls.bmp c:\winnt. But since it works when I log on as a domain admin I figure the problem isn't there, but rather something to do with the user rights. The authenticated users has read/write/execute rights to the netlogon directory and I even tried giving everyone full rights, but it didn't help.