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I'm assuming you mean the difference between share permissions and file permissions; essentially they refer to the security setting that a user may have on a local server, versus a folder or file shared on that server. In short, share permissions apply to files or folders shared over the network and file permissions are used to restrict a user who is logged onto that machine.
Figuring out how these permissions combine was a pain in NT, however Microsoft has included an effective permissions tool with XP and Windows Server 2003. Just click on the shared file or folder in Explorer, choose the Security tab, click Advanced, and then choose the tab for Effective Permissions. For more information, see the following KB article: http://support.microsoft.com/kb/308418
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