microcephalic,

Here is some more information on the subject.
I also posted the XCACLS.VBS here on Korg (with the Authors permission)
It is not the latest version though.
http://www.kixtart.org/board/ultimatebb.php?ubb=get_topic;f=2;t=002078;p=2

Les
The SubInACL does appear to share that same bug according to MSKB 296865

Les/Kent,
Maybe you could add an FAQ on this subject as it does seem to keep coming up
every now and then.

Microsoft Knowledge Base Article - 822790
Child Objects in a Folder Do Not Inherit Permissions As Expected When You Use Xcacls.exe with the /E Switch
http://support.microsoft.com/default.aspx?scid=kb;en-us;822790

Microsoft Knowledge Base Article - 318754
HOW TO: Use Xcacls.exe to Modify NTFS Permissions
http://support.microsoft.com/default.aspx?scid=kb;en-us;318754

Microsoft Knowledge Base Article - 135268
How to Use CACLS.EXE in a Batch File
http://support.microsoft.com/default.aspx?scid=kb;en-us;135268

Microsoft Knowledge Base Article - 296865
The Subinacl Utility Arranges Access Control Entries Incorrectly
http://support.microsoft.com/default.aspx?scid=kb;en-us;296865

Microsoft Knowledge Base Article - 288129
HOW TO: Grant Users Rights to Manage Services in Windows 2000
http://support.microsoft.com/default.aspx?scid=kb;en-us;288129

Microsoft Knowledge Base Article - 320081
You Cannot Delete a File or a Folder
http://support.microsoft.com/default.aspx?scid=kb;en-us;320081

Microsoft Windows Security Resource Kit
http://www.microsoft.com/mspress/books/index/6418a.asp
http://www.bookpool.com/.x/k9wrskqsu1/ss/1?qs=ISBN0735618682

SetACL 2.0.1.0 2003-09-17 15:00
http://setacl.sourceforge.net/

FILEACL v 2.7.7.2
http://membres.lycos.fr/jfb/gb/gbtools/fileacl.htm