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Setting Permissions on Folders

Hi experts,

I am setting up a new file server with an existing file structure. I have setup up groups and applied NTFS permissions on all folders. My dilemma is that I want users to create files/folders within the "Folder 2's" directory but not within the root directory. They are inheriting all permissions from "Folder 1". I am trying to set these permission on about 3,000+ folders. Is there a way of accomplishing this without having to apply it folder by folder? Software? Or maybe a script of some sort?

File Structure

Folder1 - (Only read permission)
        Folder2 -(Create folders, files)
              Folder3

Thanks in advance...
tg
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MiniDevo
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You can restrict the second folder's permissions, and then set the underlying folders to inherent the 'parent' folder's permissions:
http://technet.microsoft.com/en-us/library/cc758779%28WS.10%29.aspx

However, as you have copied the folders, you may run into something like this:
http://support.microsoft.com/kb/310316
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king daddy
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