not inheriting permission moving within volume, server 2008 R2

Hi EE experts,

I am having an issue with permissions when moving files from one folder to folder, within the same NTFS volume.

I have applied both the Microsof Hotfix KB2617058, "MoveSecurityAttributes, and also KB310316, the registry fix "MoveSecurityAttributes", on my Server 2008R2, yet I cannot get the destination folder's  permissions to INHERIT to any files moved there, from a neighboring folder, within the same volume.

The 2 folders have the same parent, with different permissions on each folder, and when I move the file from one folder to the other, it retains the source permissions.

The user has Full Control on the Windows Share, and also Full Control on both folder's NTFS  permissions.
Neither folder has the "this folder only" selected, but rather both have "this folder, subfolders and files" selected.

The weird part is that if I make the user a local admin on the server, the permissions then work as desired/expected, changing to the destination folder's permissions.

I can find no solution. short of making the users local admins on my server.

Its within a VMWare 5 environment, if that matters...

Any ideas anyone?
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On moves within an NTFS  volume, files retain their original ACLs since the move just swizzles some pointers rather than actually moving anything.

One way to get around this is to use Robocopy with a /COPY:DAT flag (or no flag, since that's the default), followed by a deletion of the source files. That requires having sufficient space for both copies.

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Windows Server 2008

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