I use icacls wherever I can, especially once you get the hang of the syntax. It is especially handy for saving and restoring directory/file permissions in case someone accidentally wipes out the correct permissions on a directory tree.
This update adds inheritance support to the Server 2003 version of icacls, and makes it easy to toggle that 'bit' through the command line.
Overall, this means you don't have to dig out Xcacls.vbs anymore to do your file permission dirty work.
Snippet from the hotfix description:
After you apply this hotfix, the Icacls.exe utility can restore the inheritance bit information successfully.
Additionally, you can set the inheritance bit of files or folders by using the updated Icacls.exe utility together with the /inheritance parameter. For more information, see the following sample:
/inheritance:
e|
d|
r
e - enables inheritance
d - disables inheritance and copy the ACEs
r - remove all inherited ACEs
Read about the update
here.