Windows Security warning when copying file from network share

I have a Windows 2003 wSP2 running Terminal Server.
I get the Below message when copying ANY file type from any network share.
Windows Security Warning:
Are you sure you want to copy or move files to this folder?
You should only copy or move files from locations that you trust.
Yes No

I have tried adding the servers to the Trusted Sites in IE as:
file://servername
also tried
file://servername.domain.local

Neither seemed to help.
This is very anoying for users, and I'd like for this warning not to prompt.
If someone has the solution, I'd appreciate knowing it.
Thanks