newbie permission problem

[Ann]

I am new to python. I have a small program that
deletes small jpeg files, but I am getting a
permission error, even though I am the owner of the
file and the directory has 777 permission. I have
WIN XP Pro. I have mks toolkit "ls" command.
Login name is "Philip"

-------------

36      45      border_l_r2_c3.gif is tiny      <- printed by program
Traceback (most recent call last):
  File "C:\test2.py", line 28, in ?
    os.remove(d) # delete the tiny files
OSError: [Errno 13] Permission denied: 'border_l_r2_c3.gif'

C:\>ls -ld . border_l_r2_c3.gif
drwxrwsrwx   1 Philip   None     0 Oct  2 23:40 .
-rwxrwxrwa   1 Philip   None   398 Oct  2 22:42 border_l_r2_c3.gif