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Here's what I'm trying to do:

I would like to create a list of documents on a site in my company's SharePoint site. Each document should have specific user's permissions to view and edit it.

For example: The list is for performance reports. John has his out there called "John_PR_09.docx". Only him and his supervisor should have permissions to view, edit, or do anything to it. And then another employee has hers out there with permissions for only her and her supervisor, and so on...

I have tested this out with a document that I removed the groups and users from (since they inherit permissions from it's parent) and only gave my user account permissions to. I then asked someone else to try and open and she could, she even wrote "TEST" on the document and saved it.

What am I doing wrong? I thought I stopped it from inheriting permissions from it's parent and only gave myself rights to edit it.

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Are you sure that this person is not a site collection administrator? Site collection administrators have full control of absolutely everything in a site collection, no matter what you do. – reg Aug 19 '10 at 15:51
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I just give it a try and this is what I've done:

On the document (Word 2007 document):

Manage Permissions - Actions - Edit Permissions - New - Add User - Then I added a specified user that is not in any administrative groups on sharepoint and he was able to open the document

I removed this user and he is not able to open the file. Access Denied.

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