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It should be done from command line (batch/cmd script, not PowerShell) as part of post-install like event

I tried

cd C:\ProgramFiles\AppDir\Settings
CACLS /T /G BUILTIN\Users:F

But it didn't work: cacls requires user name.

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should it belong to server fault? if so, feel free to move – jonny Jan 9 '10 at 17:30
Cacls also requires a file name. What file are you trying to modify? – Anonymous Jan 9 '10 at 18:21
I need to set permissions on a folder – jonny Mar 10 '10 at 13:31
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