Folder1 - Domain admin as Owner, Full Control Folder2 + Folder3 Folder 4 Files in folder 4 - File 1, 2, 3.. etc
Folder 1 has domain admins as the owner, a well as 'Replace all child objects with permissions with inheritable permissions from this object' checked.
Folder 2 received the permissions with no issue
Folder 3 will not accept the permissions because 'Access is denied'
Folder 4 receives the permissions with no issue
None of the files in folder 4 are receiving the permissions. In order for me to gain access, I have to manually change the owner to the DA group, which you can imagine takes a long time.
I'm logged in as a Domain admin, and I'm running 2008 R2. Does anyone have any idea why these permissions aren't waterfalling through to every folder? Sorry for the poor structure using a numbered list, I'm not too familiar with formatting.