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Net Folder not recognizing inherited permissions

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I have a Net Folder that has the "Relative Path" defined two subdirs below the Windows Share. NTFS rights are granted at the directory level of the share for system admins for example. Additional rights are granted at and below the "Relative Path".

The rights applied at or below the "Relative Path" are effective via the Filr website, but the inherited permissions that flowed from above the "Relative Path" are not effective.

This seems to be true for both explicit and "nested" permissions. For example, domain admins is a member of local Administrators and that local group has Full Control inherited down from the volume level but the permissions are not effective. Similarly, explicit assignment of permissions to a group at that level does not make the permissions effective for its members in the Filr web site.

Broken or working as designed?

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