To delete the Web %1!.200s!, or convert it into a folder, you must be logged on to the server as a user who is an administrator ...

To delete the Web %1!.200s!, or convert it into a folder, you must be logged on to the server as a user who is an administrator of both this Web and the Web's parent.  You may need to change permissions settings, or restart your client application to force reauthentication.