1. Samba 3.0.21a is PDC 2. Windows 2003 Server as a domain member 3. Shared a directory on the Windows 2003 Server. 4. Gave the share name full control to Everyone. 5. Set specific permissions on the shared directory. 6. Windows 2003 Server gives any workstation logged on to the domain full access to the shared directory, ie directory permissions are ignored. 7. Set more restrictive permissions on the share and Windows 2003 Server behaves better. Conclusion: Seems that Windows 2003 Server is ignoring directory permissions and only using permissions on the share.