JSI Tip 6310. When you convert a FAT32 partition on Windows XP to NTFS, Everyone has Full Control of the All Users folder?

When you install a fresh copy of Windows XP on an NTFS partition, the default permissions on the the ALL Users folder, and its' sub-folder with inheritable permissions, are:

Administrators:   All items (including Full Control) are selected. 
Everyone:         Read & Execute, List Folder Contents, and Read are selected. 
Power Users:      All items except Full Control are selected. 
System:           All items (including Full Control) are selected.
Users:            Read & Execute, List Folder Contents, and Read are selected.

When you run Convert.exe, the All Users folder, and its' sub-folder with inheritable permissions, only show

Everyone:         All items (including Full Control) are selected.

Convert.exe uses the %SystemRoot%\Security\Templates\Setup Security.inf file to apply security settings. Since Windows XP was installed on a FAT32 partition, the file security settings are NOT appropriate.

To workaround this behavior, reset the permissions on the All Users folder per the NTFS installation defaults.