File/Folder permissions in Win7

I am trying to comprehend file/folder permissions in Windows 7. I created a file and a folder(file1 and folder1) and provided both read permissions in explorer.  I placed file1 and folder1 in an Explorer folder with an authenticated, system, administrator, and users with more permissions.  
Problem: I was still able to write to file1.  How do I make file1 truly read only?
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If you're just making a file read only, right click on it, and in the attributes check "Read-only" and hit Apply.

If you're a command line type of person:

attrib +r filename.ext
JohnBusiness Consultant (Owner)Commented:
At the individual file / folder level, security is the same as it has been back to NT4 Workstation in terms of how to apply it.

Security has changed in detail and Windows 7 secures main folders like Program Files and such like.

But if you understood file security from earlier systems, it is very similar in Windows 7.

... Thinkpads_User
gumball60Author Commented:
I am still trying understand why after applying read-only permissions to file1 and placing it an Explorer folder with higher permissions....why my read-only did remain for file1? Is it an inheritance issue from the folder?
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JohnBusiness Consultant (Owner)Commented:
If permissions have been applied to an individual file before placing in a folder, placing in that folder does not change the files permissions. You can set file permissions to what you want as was noted in an earlier post.

.... Thinkpads_User
If by default, if you copy a file to a folder (or move a file from another volume) the file will inherit permissions from its parent.

To remove the default permissions, you have to go into Security > Advanced and break inheritance (uncheck "Include inheritable permmissions...") to keep the parent permissions from automatically applying.
gumball60Author Commented:
Richmondj...The "Include inheritable permmissions..." is grayed out.  I can not uncheck it.
Is there a "Change Permissions..." button?  If so, you have to hit that first.

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gumball60Author Commented: it
file1 is now read-only
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