yes, this often occurs when you want to grant one set of permissions to the directory itself, but a different set that is inherit-only (IO) to its children:

<pre>
C:\> icacls c:\windows
C:\windows NT SERVICE\TrustedInstaller:(F)
           NT SERVICE\TrustedInstaller:(CI)(IO)(F)
           NT AUTHORITY\SYSTEM:(M)
           NT AUTHORITY\SYSTEM:(OI)(CI)(IO)(F)
           BUILTIN\Administrators:(M)
           BUILTIN\Administrators:(OI)(CI)(IO)(F)
           BUILTIN\Users:(RX)
           BUILTIN\Users:(OI)(CI)(IO)(GR,GE)
           CREATOR OWNER:(OI)(CI)(IO)(F)
</pre>