John,
yes modifying anything like permissions can be a pain and risky if not done exactly the way it should Firsly what are inheritable permisions, it's a microsoft NTFS permissions option which allow permissions to inherit from the parent folder as opposed to explicit permissions on an object. If you do a copy you are copying the inheritable permissions and if you also choose apply to child objects they are written on all folders and files explicits.You can check microsoft website on how they work and how to change them to not inherit.
Some troubleshooting steps:
1. test this out for a test folder. Create a copy of on small sub folders i.e. Vault Stiore ptnxx\2012\01-01\00\01A
2. try to do a manual copy of that folder in windows explorer - does it work?
3. try to do robocopy of that sub-folder using your original ropy options - does it work?
result - Works
- if it does I did some further research and could be robocopy from root of the drive does not work.
http://social.technet.microsoft.com/Forums/windowsserver/en-US/84f95ff5-e942-4435-8ec5-40ceff57e0aa/robocopy-acl-issue
result - NO - same error
- remove inheritable permissions on that folder - uncheck it and choose ADD which will add the inheritable permissions as explicit permissions on this object.
- select replace all child object permssions with inheritable permssions from this object
