[Further Edit]: D'oh, I'm an idiot. I just realized I knew about this a long time ago (NTFS is the problem here) and then forgot it because I haven't had to deal with anything where it mattered for so long. So...nevermind, I guess. Anybody know of a good workaround in Server 2008?
[Edit]: Oops, should have said: This is on a Windows Server 2008 based domain. I'm guessing that if there's a fix / alternative approach I need to take, it's going to be something in Group Policy, but whatever works.
This may be something obvious that I've just never noticed before, but I have a series of folders laid out similar to 'Director' -> 'Managers' -> 'Normal Staff' -> 'Part Time Staff'. Each is shared, with descending permissions, so e.g. the department head has Full Control on the 'Director' folder, and the lowest level employees have Full Control on the 'PT Staff' folder and no permissions on the upper folders. Pretty simple layout that mirrors the actual hierarchy of the department, and in theory (but apparently not in practice) accommodates the rather hectic nature of the place.
The problem I'm seeing - and maybe this is intended behavior, but it doesn't seem like it should be - is that if, say, a manager decides that normal staff need access to 'FolderX' that is currently in the manager's directory and they move it to the 'Normal Staff' folder, 'SomeFolder' doesn't pick up permissions for normal staff, even though it is now a subfolder of 'Normal Staff', which normal staff have full control of. Normal staff can copy the entire directory, in which case they'll gain 'Full Control' on the copy, but they can't directly modify the original files, or delete 'FolderX', for example.
Is there something I'm missing that will make any folder moved to a folder 'X' immediately inherit the permissions of 'X', regardless of who originally created the folder or where it was moved from? Or is there some better way to do what I'm trying to do that I should have thought of and didn't?