samba - Mar 2003 - W2K Explorer security propagation prob in 2.2.8 and Samba-3's and HEAD

I've have an NT4 PDC with Samba-2.2.8 joined as a domain member. When using
Explorer in W2K to change security settings on Samba shares, the security
settings are not propagted down the the directory tree - yes I have ticked
the "Reset perms on all child.....". I also see "CREATOR
OWNER" and
"CREATOR GROUP" as accounts defined to all directories.

2.2.7a exhibits none of these issues, but 3 (Alpha 21) and HEAD both do.

BTW, I've tested on different Linux distribs (RedHat, SuSE and Debian) on
s390 and I686 arcs. One important point is that Samba is running
with-acl-support enabled on POSIX ACL enabled Kernels at 2.4.19 and 2.4.20.

Any help would be greatly appreciated.

Cheers, Grant