We recently had a case where a user moved a folder into another folder expecting that the permissions in the parent folder would automatically roll on down. Of course they did not, when you copy WITHIN a volume it maintains its original perms.
What was really interesting is what happened when we tried to use the ole 'Replace all child object permissions with inheritable permission from this object'. Although the user was copied down, the perms were not. The user DID NOT get the inherited perms on the sub objects.
You have to dig to find the correct checkbox.
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Disclaimer The opinions expressed herein are my own personal opinions and do not represent my employer's view in any way.