A good way of assessing your understanding of this area is to take the self-administered assessment exam Microsoft have written. This is an area that catches lots of people out who consider themselves reasonably advanced Windows NT administrators. Take Ownership O Allows a user to make themselves the owner of a file File security can only be set on NTFS volumes, not FAT or HPFS volumes. Directory standard permissions are the same as file permissions, with the addition of a second permission level which specifies the default file permissions for files created in that directory. Also note that the Full Control permission level is too powerful in most cases for non-administrators, since it gives a user the ability to change permissions and take ownership of files they did not create.
Permissions are cumulative.
Files created in a directory initially retain the permissions from the directory level. If the file permissions are changed, these new permissions override any other permissions. No Access, Print, Manage Documents and Full Control. No Access is the same as for file security. Manage Documents permissions allow you to change the order and status of other people's print jobs to that printer in addition to your own, and Full Control allows you to change permissions of print queues and take ownership of printers as appropriate.