File permissions keep resetting

I have a Windows 2000 server with service pack 4 that is a DC. There is a share on that server that my users connect to by network name \ share name. The share is set to have everyone full control. The folders are setup so that groups have Write, Read, list folder contents, and read & Execute. The files inside the folders have the same permission, but the individual permissions are added so that certain users have full control of a file while others have denied read. Allow inherit on the files is turned off.

When the user that has full control modifies the file and saves it the permissions on the file changed to what the folders permissions are and all user permissions that where there are cleared. Does anybody know way this is happening? I keep going in there and reset the permissions and every time this happens.

 

NTFS or FAT32?

Share permissions and NTFS file/folder permissions are completely seperate and can conflict. Same with share and FAT32 but not to the same extent.

 

Sorry I didn't mention it.

The drive is NTFS.