Found it!

[Gerald Carter]

OK.  Here's what is going on...


in posix_acls.c:create_canon_ace_lists() around line 752,
we only add to the dir_ace_list if 

(psa->flags & SEC_ACE_FLAG_OBJECT_INHERIT|SEC_ACE_FLAG_CONTAINER_INHERIT)

In the acl I'm seeing the psa->flags is only set to 0x2
(SEC_ACE_FLAG_CONTAINER_INHERIT) so no ace's are added to dir_ace.
Therefore the only entries ever added to dir_ace ar ethe ones to ensure
that the acl is valid (DEF_GROUP_OBJ, etc...) which is why the
default named group perms are getting removed...

Am looking into the mask and default:mask settings now as to why they are
not getting set to rwx.





Cheers, jerry