I can confirm this bug in Lucid. I created a public family account and I
moved a folder with with folders of images to the Pictures folder of the
family account. I added the family group and changed the owner and group
to family in Nautilus clicked the recursive "caontaining items" or
whatever and nothing. I did it under root and under gksudo nautilus. I
wound up doing it in the terminal which can cause mistakes resulting in
re-installation.

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gksudo nautilus won't set ownership/permissions on files below
https://bugs.launchpad.net/bugs/165113
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