Hi Paul,
I'm not an expert on networking, or batch programming either for that matter, but if copying this directory meets a genuine operational need - ie will result in a genuine productivity or efficiency gain for all users - then your network administrator ought to have the brains and the gumption to realise that you need a permission to access All Users; and YOU need to make sure that point gets across!
The only alternative I can think of is the obvious one of iterating the Xcopy command as many times as you have different users, specifying each user in turn. This is obviously a much clunkier and clumsier solution because if you have twenty users, data transfer will take twenty times as long, and will take up twenty times as much disc space.