6.3 I'm trying to copy files from account1 to account2 but get the following error message:

USER LACKS CREATE DIRECTORY ENTRIES (CD) ACCESS TO PARENT DIRECTORY

What does this mean?

SM (or a privileged program) is required to copy files across account boundaries.

However, if you have network services and access to both account1 and account2 then use

DSCOPY file.group.account TO file.group.account2,hostname#[user/password.account]

This does not require SM capability.