16 How inheritance affects file and folder permissions in Windows Server 2003

After you set permissions on a parent folder, new files and subfolders that are created in the folder inherit these permissions. If you do not want them to inherit permissions, select This folder only in Apply onto when you set up special permissions for the parent folder. In cases where you want to prevent only certain files or subfolders from inheriting permissions, right-click the file or subfolder, click Properties, click the Security tab, click Advanced, and then clear the Inherit from parent the permission entries that apply to child objects. Include these with entries explicitly defined here. Sorce: http://technet.microsoft.com/en-us/library/cc758779(WS.10).aspx