Windows NT 4.0, Windows 2000, Windows XP, and Windows Server 2003 support NTFS permissions. Any volumes formatted with NTFS will support NTFS permissions which can be used to control access to resources on your computer.
For simplified administration, permissions are normally passed on from parent folder to subfolders and files. In other words, subfolders and files inherit NTFS permissions from their parent folder. When NTFS permissions are assigned to a folder, any current subfolders and files within that folder inherit the same permissions. Any new files or subfolders created within that parent folder also assume the same NTFS permission of that parent folder.
You can prevent NTFS permission inheritance so that any file and subfolders in a parent folder will not inherit the same NTFS permissions of their parent folder. You can do so in Windows Server 2003 by opening the properties dialog box for a folder, selecting the Security tab, and clicking the Advanced button. From the Permissions tab clear the option to Inherit from parent the permission entries that apply to child objects. A security dialog box will appear asking if you want to copy the existing permissions or remove them.