I am having a problem when my users move folder\files\ from one folder with full rights to a folder they do not have modify\delete rights in. After the users have moved the file\file over they are still able to move another copy of the file over to the new folder and replace it. What I'm wondering is if this is the "Inherited permissions are not automatically updated when you move folders"problem when you move files or folders from one location to another or is this something different.

Your post was a little bit confusing...So you have two folders, FolderA and FolderB.User1 has "Full control" rights on FolderA. User1 has "Read & Execute", "List folder contents", "Read", and "Write" permissions on FolderB.User1 moves (or copies?) FileA from FolderA to FolderB. The operation completes successfully.User1 then moves (or copies?) FileA from FolderA to FolderB again, thus overwriting the file.You want the user to not be able to overwrite files that are in FolderB, but you want them to be able to write to FolderB?Does this pretty much sum up the situation?