Filesystem Repository Authentication

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We're on ep5 sp5 patch 2

I've set up a small filesystem repository to test its authentication characteristics. The folder is a network share (actually resident on the same server, but I wanted to use unc names for the test). Everybody has full control on the folder.

I've set the network path with an nt admin account as the user.

I've created the filesystem repository with Microsoft_Windows_KM, and W2kSecurityManager.

The test corpus gets mounted and is visible to portal admins within the portal. Now here's the wrinkle.

While the filesystem folder has everybody full control, the 5 files inside the folder have specific user permissions. The parent security isn't inherited to the files.

Seems to me that everybody should be able to see inside the folder, but only those people who have authentication with one of the files would be able to see any of them.

But what I'm seeing is that users who are mapped can't even see the folder itself, even though they are correctly mapped within the portal.

Shouldn't the portal cede authentication to the windows system, and manage access according to that exactly?

thanks

a.c.