I'm working with a shared drive scenario on a Windows 2003 network.
On the shared drive, I've created a folder. I've given a group "Full Control" of that folder. They are able to create and edit documents at will within that folder but when they go to try and change permissions on any file or folder within the folder or the folder itself, they can't. Add and Remove are grayed out.
I've searched for an answer to this and found someone with a similar situation but the answer had to do with checking the GPO. I did that, and there are no GPO issues.
I've checked again and again and verified that this group has every permission available, and that the permissions apply to the folder and all sub folders and files. I've also made them the owner of the folder, to no avail.
I cannot think of any reason why members of this group cannot change the permissions on files or folders.