I have not tried your code, and am certainly not a expert when it comes to HEX and bitwise code... but I think I see some things that may help... I'm sure others around here could verify this better than I.

No need for the quotes around the numbers:
Code:
  
  $ADS_ACETYPE_ACCESS_ALLOWED = "0"
  $ADS_ACETYPE_ACCESS_DENIED = "1"
  $ADS_ACEFLAG_INHERIT_ACE = "2"
  $ADS_ACEFLAG_SUB_NEW = "9"


If these are HEX values shouldn't they be like $hex=&H0000
Code:
 
  $RIGHT_READ = +H80000000
  $RIGHT_EXECUTE = +H20000000
  $RIGHT_WRITE = +H40000000
  $RIGHT_DELETE = +H10000
  $RIGHT_FULL = +H10000000
  $RIGHT_CHANGE_PERMS = +H40000
  $RIGHT_TAKE_OWNERSHIP = +H80000


Shouldn't the code below be using "|" instead of OR
Code:
 
  CASE ($case = "C")
    $ace.accessmask = $RIGHT_READ OR $RIGHT_WRITE OR $RIGHT_EXECUTE OR $RIGHT_DELETE
  CASE ($case = "R")
    $ace.accessmask = $RIGHT_READ OR $RIGHT_EXECUTE


Hope this helps.