Read/Executes Permissions on a Windows 2003 DC

I need to give my domain user read and execute permissions on a secured folder.  Please see the setup for permissions.
Permissions

When i try to log in as a regular domian user and try to execute i get the following message " 
 Permission Error
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ProtechCTAsked:
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ProtechCTConnect With a Mentor Author Commented:
Thanks stavros41!  I knew i was missing something here.

It should also be noted that in order for to apply the permissions to the child object, that as the administrator i had to take ownership of all the folders and objects first.  This is because most of the file already contained in this folder were owned by other users.
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stavros41Connect With a Mentor Commented:
Have you clicked replace permissions on all child objects and applied?
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ProtechCTAuthor Commented:
It should also be noted that in order for to apply the permissions to the child object, that as the administrator i had to take ownership of all the folders and objects first.  This is because most of the file already contained in this folder were owned by other users.
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