NT/2000 security question

[vista7]

Guys,

I have a 2k member server. I set locally security options to only allow my account to access computer from network in local security options. I logged into another box that was not a member of the BSDN domain which is our domain name.
I browsed across the network to \\sysadmin\c$ ; the default shared c drive. This drive was wide open except for directories I had set ntfs permissions on. I looked at the ntfs permissions for c; they as I suspected were set to everyone full access. Now my question is this; why was I able to access this drive across the network? I was logged into a box as local admin on a box not on the network; it did not ask my the dialogue for username and pwd. I believe this is a bug with win2k, but I thought that security option should override any ntfs permissions. any thoughts?

[cobra]

By default, win2k sets the everyone group in there. You need to remove them and adjust accordingly.
As for the domain dilemma. Something is not kosher.
Is there another lan admin who has a logon script running to share it out?