Child objects in a folder do not inherit permissions as expected when you use Xcacls.exe with the /E switch
http://support.microsoft.com/kb/822790

How to use Xcacls.vbs to modify NTFS permissions
http://support.microsoft.com/kb/825751

Obtain the latest version of Xcacls.vbs
Extended Change Access Control List Tool (Xcacls)
Xcacls.vbs is an unsupported tool that provides additional capabilities not provided with the supported utility, Xcacls.exe.
http://download.microsoft.com/download/f...s_installer.exe