<<The problem now is that I cannot reference the MDB via a full pathname.>>
As long as you have List Folder at the parent and down to the folder where the DB is, you should be set.
<<I know there is a 'Bypass Traverse Check' in the Local Security profile. If I remove the bypass for Power Users will the folder permissions then become effective?>>
Sorry, don't know the answer to that.
JimD.