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Castlewood

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Why is the FULL Control rights NOT inherited to the sub-sub-folder ?

Hi Experts,
This is a very starnge case.
We have a highly confidential "Finance" folder on a Win 2003 server AD Domain. This morning CFO complianed he cannot get in to its sub-subF folders. I checked and found the "Apply To" for those users with Full Control rights in the sub folder is somehow automatically changed to "This Folder Only". Here is more detailed to help you understand the scenario:

Advanced Security Setting for Finance folder on U drive:
Type   Name   Permisson   Inherited From    Apply To
Allow  Admin Full Control   <Not Inherited>  This folder, sub-folders and files
Allow  CFO    Full Control   <Not Inherited>  This folder, sub-folders and files
Allow  FA      Modify          <Not Inherited>  This folder, sub-folders and files

Advanced Security Setting for SubF: (a sub folder of Finance)
Type   Name   Permisson   Inherited From    Apply To
Allow  Admin Full Control   U:\Finance\        This folder only
Allow  CFO    Full Control   U:\Finance\        This folder only
Allow  FA      Modify          U:\Finance\        This folder, sub-folders and files

Advanced Security Setting for Sub-SubF: (a sub folder of SubF)
Type   Name   Permisson   Inherited From       Apply To
Allow  FA      Modify          U:\Finance\SubF   This folder, sub-folders and files

Notice the Apply To for Admin and CFO on the SubF folder has been somehow changed to "This Folder only". And that is why they cannot access Sub-SubF folder. When I clicked "Edit" trying to change the Apply Onto, found it is dimmed.
Question is, why did it happen? Why did it only happen to the users of Full Control?
If I change Admin and CFO to have "Modify" instead of "Full Control" on Finance folder, the Apply To on SubF folder will turn to "This folder, sub-folders and files" which is normal.
If I create a brand new folder under Finance, I can easily re-produce this issue again and again. But this issue doesn't occur on all other folder than this Finance folder.
I've been thinking if someone installed some other additional security method on this folder. What could that be? And how to fix this issue?
Can you shed some light?

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65td
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Is there a group policy to set the security on that folder?
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Springbokkie

Hi right click on the folder go to security and select advaced i tick the first option and select copy then ok
now it should not be greyed out any more.

have you thought about creating security groups with in AD and then just adding users in to these in stead of have to always change permissions for individual users with these groups you only need to edit members.
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Bryon H
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issue still there