From: tonyb61 on
I am having problems with sub folders/files not inheriting the permissions
set on a top level folder.
I have a top level folder c:\foo which is set NOT to inherit from parent,
and I select copy the permissions from c:\ when I untick inherit. I then add
a number of user permissions to that folder, checking the Replace permission
entries on all child objects..... check box. If I reopen
properties/security/advanced security for foo the permissions are set
correctly.
If I create a file in foo, this has the correct permissions.

If I create a folder bar in foo, this inherits the users I've set
permissions for in foo, but shows the permissions as special permissions
shaded grey to show they are inherited.

But if I create a folder or file in bar this does not inherit the additional
users I added to foo after unticking inherit for foo. Both file and folder
have the permissions for the original users on c:\ such as Creator
Owner/System/Local Administrator accounts but none of the added user
permissions for foo or bar ?
Why is this ?