We are experiencing some weird file locking issue where some files located on an iSCSI SAN gets locked out. The issue is weird because the user can open the file, excel in this case, and make modifications and save his modifications with no issues or errors. However, we cannot rename or delete the file. We can copy the file without problems. Both domain admins and the user have full control over the file. Other files in the same directory have no issues whatsoever. Anybody experience this problem before?

It's probably locked by another process. Try using Process Explorer (sysinternals app on microsoft.com) and use handle search to see what is holding that handle.

I have unloker installed and it comes back with no threads locking the file. It is very weird. If a process was locking it, we shouldn't be able to open it in excel to make modifications and save it under the same filename.