I need a real read only folder!
 

Is it possible to set certain folders in Windows XP to a "real" read only folder where users will be unable to save in them, rename, move them much like folders save on a cd rom?

Try cacls. It's a command prompt thing that deals with setting permissions of files and folders and crap. Too bad there isn't CHMOD for Windows though, it's a billion times easier to understand.

You could always use NTFS permissions (you'll need to disable simple file sharing in the "view" tab in Tools->Folder Options in Explorer) to deny certain users read/write/whatever access to a folder, provided that your hard drive is formatted with NTFS.