This is an article by Microsoft:
How permissions are handled when you copy and move files and folders
http://support.microsoft.com/kb/310316
It seems that this behavior was modified in Vista, though.
The default behavior used to be modifiable by a registry setting.
With Windows 7, I recently saw what seemed "aberrant" permissions
behavior. I am not too familiar with the system to be sure, though. And,
to be honest, I don't have a strong will to be familiar with it... That
smashing amount of "eye candy" and intended "friendliness" confuses me
somewhat.
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