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Change to one GPO propagates to all GPOs on all levels

Hi all,

 This is my first post after finding much help from others on here for different issues. I know have a GPO issue and can't find anythin glike it anywhere ....

 I have a Win2003 enviroment with one DC and 2 DNS servers. Before I tok after site they had already created a All Users GPO. They were requesting to get rid of that GPO all together and then to divide it up into 3 seperate GPOs with different levels of internet access. However when I try to add a new GPO it has already taken the Internet security settings of the default GPOs. I tried to remove these from the new GPO and added the more restriced access to it. These setting were now propagated to the default GPOs above it. If I then adjust the default GPOs the settings are then propagated to new GPO. So no matter what I do when I make a setting change to one GPO the rest of them all get the same setting change.

Could anyone shed some light on this issue??

Much appreciated

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Have no discovered that it is going to be much easier to just put a proxy server in place to help with the restrictions.

Martin you get the points as you were first to respond
Rob, thank you for the points although I don't deserve it, but I appreciate your open-minded approach for finding solutions:-))