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You have to turn off simple file sharing in Windows XP to get the Windows 2000 style security tab. You can do this by going to Tools > Folder Options > View tab > Use Simple File Sharing (Recommended) in My Computer and unchecking it. The option is at the very bottom of the list.
After doing this, when you right click a folder and choose security you'll see the familiar Windows 2000 interface. Just add the iusr account to the folder and file and give the proper permission.
As a note, this error also occurs when you try to update data but the recordset may not be in a state suitable for updating.
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