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You try to create a Microsoft Windows SharePoint Services 3.0 subsite. When you do this, the Inherit Permissions option is unavailable. Instead, you are forced to select the Use Unique Permissions option. Therefore, you cannot create subsites that can inherit permissions from the parent Web site.
This behavior occurs when you do not have "Manage Web Site" permissions.
This behavior occurs because of the architectural security changes that were made in Windows SharePoint Services 3.0. This behavior is expected.
For more information about Windows SharePoint Services 3.0, visit the following Microsoft Web site: