Error applying security - when changing permission to a folder OR can't open a folder

Error applying security can happen if you are trying to change permission to a folder due to you not being able to open that folder.

1. Right click > properties > security tab > advanced > edit
2. select your user account name
3. Check the box for "replace owner on subcontainers and objects"
4. Click OK to all

Now you should be able to open up that folder

source: http://www.sevenforums.com/system-security/7320-error-applying-security.html