Hi Jeff,
Yes, I do use HPFS386, so it should work. Let me explain my test results:
I created a C:\TEST directory. I give a user read access to the directory and I 
created a TEST.TXT file in it. So this file inherits the authorization of the 
directory.
Now I make a backup of the file using ADSM and I delete the file afterwards. 
When I restore the file it again inherits the authorization of the directory, 
so everything is ok. Now I delete the file AND the directory. When I now 
restore the file, ADSM creates the directory and the file, but the user has no 
access to the file. You can also see this with the LanServer command 'net 
access c:\test' which should have shown the access the user has to the 
directory.
When you however authorize the user access to the specific file (so not to 
c:\test but to c:\test\test.txt) and you do the same scenario the authorization 
is restored fine!
So my guess is that when the authorization is applied to a directory this is 
not properly backed up. This would be a big problem because authorizations are 
always applied on a directory level, almost never on a file level.
I hope this explains my problem.
Kind regards,
Eric van Loon