I'm using Ubuntu 8.04.1 LTS with the very latest updates and I also
experienced this bug, which is the first time for me because usually
nautilus-share just works. Maybe it will help if I give the complete
(English) error message I have seen:

'net usershare' returned error 255: net usershare: cannot open usershare 
directory /var/lib/samba/usershares. Error Permission denied
You do not have permission to create a usershare. Ask your administrator to 
grant you permissions to create a share.

I assume that a workaround would be to start nautilus with sudo so I do
have permissions. This is a clean install of 8.04.1 with updates and I
didn't mess with the permissions myself, all I have got is one user with
default permissions. I'm also quite surprised that this bug was reported
in April, but that it is still present in Hardy? With all due respect
for the Ubuntu developer's work, this seems like a high priority bug
which should have been fixed already. Also, this bug is filed for the
package meta-gnome2, but shouldn't it be filed for the package nautilus-
share?

-- 
gnome share folder gui seriously flawed
https://bugs.launchpad.net/bugs/216738
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