Error message when you change security settings for a folder that contains a child object for which you do not have access permission: "Access is denied"

Symptoms

Consider the following scenario on a computer that is running Windows Vista or Windows 7:

You have the Full Control permission for a folder.
The folder contains a subfolder or a file for which you do not have access permission.
You try to change the security settings for the folder. For example, you try to remove a user's permissions from the folder.

In this scenario, you receive the following error message when you apply the changes.

An error occurred while applying security information to: <folder>

Access is denied.

Continue
Cancel

However, if you click Continue in the message box, the setting changes are made successfully.

You can ignore this message because the changes can be applied.

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