Permissions problems: traverse vs. notraverse

[Insert Real Name]

Hello,
Yesterday I installed Cygwin for all users on my own non-domain machine 
while logged-on as "Administrator"; I made some cursory checks that it 
all worked for the Administrator, and things seemed OK.

This morning I logged into my usual account Michel (in the "Power Users" 
group) and found that Cygwin failed to work: the output of cygcheck -s 
-v -r is attached as "cygwin-ntsec.txt" (executed at a Win 2K command 
prompt). Any attempt to start cygwin.bat yielded these messages on the 
console:
==(Quote)==
bash.exe: warning: could not find /tmp, please create!
bash: /etc/profile: Permission denied
bash: /cygdrive/c/Users/Michel/.bash_profile: Permission denied
bash-2.05b$
==(End Quote)==
and no Cygwin-linked program could work: "bash: fork: Permission denied"

I had used the Cygwin version current in early 2004 without any such 
problems (I had reinstalled Windows 2K in the intervening months, so 
there was no existing Cygwin when I installed yesterday.)
Initially I thought giving my usual account Full control NTFS 
permissions all over the Cygwin directories might get it to work, but of 
course it did not.
Then I read the latest version of the User Guide and found that traverse 
checking had been implemented since I last used Cygwin: so I set 
CYGWIN=ntsec notraverse and things started working correctly again: the 
attached universal diff (diff -i -u) cygcheck-diff-i-u.txt shows the 
changes in the output of cygcheck -s -v -r

Here are the Windows permissions of my home directory and its parent:
C:\Users\Michel>cacls c:\Users\Michel
c:\Users\Michel BUILTIN\Administrators:(OI)(CI)F
                ZIRIZUI\Michel:(OI)(CI)F
                NT AUTHORITY\SYSTEM:(OI)(CI)F
C:\Users\Michel>cacls c:\Users
c:\Users BUILTIN\Administrators:(OI)(CI)F
         Everyone:(OI)(CI)R
         BUILTIN\Power Users:(OI)(CI)R
         NT AUTHORITY\SYSTEM:(OI)(CI)F
         BUILTIN\Users:(OI)(CI)R

and the Cygwin permissions are:

# file: c:\Users\Michel
# owner: Michel
# group: None
user::rwx
group::---
group:root:rwx
group:SYSTEM:rwx
mask:rwx
other:---
default:user:Michel:rwx
default:group:root:rwx
default:group:SYSTEM:rwx
default:mask:rwx

# file: c:\Users
# owner: Administrators
# group: root
user::---
group::---
mask:rwx
other:rwx
default:other:rwx

What I can't figure out is how to change the NTFS permissions on my home 
directory and its parent so that a) the Windows security requirement 
that a user has only read & list permissions via his primary group on 
the parent directory is satisfied, while b) the POSIX requirements on 
the parent directory are also satisfied: surely the presence of NTFS 
group read & list permissions on the parent directory for the NTFS 
primary group of the user should satisfy Cygwin?

Can anyone explain this to me?

Michel
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