I thought they would inherit the permissions, but for some reason the way I am doing things, they do not. I can go in and create a text file in that folder and it will inherit the permissions, but when my program's automated process runs and creates a new file in the same folder, it does not inherit the folder's permissions. Instead it is given only administrator, the specific user logged in, and system. I am using a printer driver to create these files from Foxpro reports and so it may be that the printer driver is causing this. It works OK on my win2k pro laptop, but not on the win2k server box.