Difference between server permissions

which one is classified as ntfs? Security tab or sharing/permissions button?

Thanks

"Security"

Sorry, a bit confused...if i want an AD group to have access to that folder...where should i add the group

Under the Security tab.

Ok...so far this is what I understand

1) Security tab is NTFS permissions

2) Under sharing/permissions button only Authenticated Users with full control should be there

3) Anytime I want to add a user or group for permissions it should be under the security tab?

Correct?

Yes

Say for example...I have given a user permissions through sharing/permissions but not through security....can he still access that folder from another pc?

No

Ok, so basically these days the sharing/permissions tab is only used for access is logging on locally on the pc itself?

No. NTFS permissions apply *always*, because they're a part of the file system object that the users are accessing.
*Share* permissions are only applied if a user accesses a file using this exact share. They are not applied if the user accesses the same file through another share or locally.

Ok, but instead of giving the user 'share' permissions using the exact share, cant you do that in security tab as well?

That's what I've been saying from the very beginning: Give Everyone Full permissions on *share* level, and use NTFS permissions *only* to control access.

pzozulka,
by default, the Everyone group has only "Read" permissions as share permissions on W2k3, not "Full".
And the "Everyone" group does NOT include "absolutely everyone" in W2k3. The Everyone group includes Authenticated Users and the Guest account. The Guest account is disabled by default in W2k3, so it usually doesn't make a difference whether you're using Everyone or Authenticated Users. Just try yourself to access a share opened to "Everyone" on a remote server when logged on as a local user.
"On computers running Windows Server 2003 operating systems, Everyone includes Authenticated Users and Guest. On computers running earlier versions of the operating system, Everyone includes Authenticated Users and Guest plus Anonymous Logon."
Well-known security identifiers (special identities)
http://technet.microsoft.com/en-us/library/cc780850(WS.10).aspx

Thanks all, one more question: security tab permissions are called NTFS permissions...so what are the permissions under sharing/permissions button called?

I know this is rather simplified, but it sometimes helps my clients when I explain file share permissions.

Think of the Share as the front door of a house, and think of NTFS Security as a lockable bedroom door. In order to get to the objects inside the bedroom (folder), you have to get through the front door first, and then the bedroom door. The share level is represented by the front door because, if you dont have rights there, it doesnt matter what rights you have to the bedroom door (the folder), or the files and folders (objects) behind it.

If you are accessing objects through a share, the combonation of share and file (NTFS) permissions are taken into consideration when you access objects within that share.  For instance, if the share permsissions are Read Only,  you wont be able to save or modify objects within , even if you have full NTFS rights. Likewise, if you have RWX share level rights, and read only on the objects within, the same condition applies.

I hope this clears it up for you; it can be quite confusing.

Cheers,
Juice.

Well, "Share permissions".