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Folder And File Permissions 

Windows NT allows administrators to define permissions on files and folders located on NTFS partitions. Administrators usually do this via the GUI (Windows NT Explorer) by right-clicking the file or folder, selecting Properties, and clicking the Security tab. Clicking the Permissions button opens the Permissions dialog box, listing all NTFS permissions.

When working with files on NTFS partitions, you must be careful: Security permissions are changed when you copy or move these files. Here are some guidelines:

When you create a file or a folder, it inherits the permissions from its parent folder.

When you copy a file or a folder to another folder on the same or a different partition, it inherits the NTFS permissions of the destination folder.

When you move a file or a folder to another folder on the same partition, it preserves all the NTFS permissions.

When you move a file or a folder to another folder on a different partition, it inherits the NTFS permissions of the destination folder.

When you copy or move a file or a folder to a FAT partition, all NTFS permissions are lost.

When you copy a file or a folder from a FAT partition, it inherits the permissions of the destination folder.

These rules are very straightforward and easy to remember, especially once you realize that moving a file to another partition actually copies the file to the partition (and so the file inherits the permissions of the destination folder) and then deletes the source file.

When applying permissions to a folder, you have two additional options.

Replace Permissions On Subdirectories: Selecting this check box will propagate all the permissions on the current folder to all its child folders (i.e., its subfolders).

Replace Permissions On Existing Files: Selecting this check box will propagate all the permissions set on the current folder to all the files in it.

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