diff -ur ../samba-base2/include/proto.h source/include/proto.h
--- ../samba-base2/include/proto.h	Fri Sep 12 12:03:13 2003
+++ source/include/proto.h	Sun Sep 28 16:15:53 2003
@@ -2162,6 +2162,8 @@
 BOOL lp_blocking_locks(int );
 BOOL lp_inherit_perms(int );
 BOOL lp_inherit_acls(int );
+BOOL lp_inherit_owner(int );
+BOOL lp_inherit_group(int );
 BOOL lp_use_client_driver(int );
 BOOL lp_default_devmode(int );
 BOOL lp_nt_acl_support(int );
@@ -4562,6 +4564,8 @@
 files_struct *open_directory(connection_struct *conn, char *fname, SMB_STRUCT_STAT *psbuf,
 			uint32 desired_access, int share_mode, int smb_ofun, mode_t unixmode, int *action);
 files_struct *open_file_stat(connection_struct *conn, char *fname, SMB_STRUCT_STAT *psbuf);
+void inherit_owner_byname(struct connection_struct *conn, const char *name);
+void inherit_owner_byfile(struct connection_struct *conn, files_struct *fsp);
 
 /* The following definitions come from smbd/oplock.c  */
 
diff -ur ../samba-base2/param/loadparm.c source/param/loadparm.c
--- ../samba-base2/param/loadparm.c	Fri Sep 12 11:46:49 2003
+++ source/param/loadparm.c	Sun Sep 28 15:58:11 2003
@@ -409,6 +409,8 @@
 	BOOL bBlockingLocks;
 	BOOL bInheritPerms;
 	BOOL bInheritACLS;
+	BOOL bInheritOwner;
+	BOOL bInheritGroup;
 	BOOL bMSDfsRoot;
 	BOOL bUseClientDriver;
 	BOOL bDefaultDevmode;
@@ -535,6 +537,8 @@
 	True,			/* bBlockingLocks */
 	False,			/* bInheritPerms */
 	False,			/* bInheritACLS */
+	False,			/* bInheritOwner */
+	False,			/* bInheritGroup */
 	False,			/* bMSDfsRoot */
 	False,			/* bUseClientDriver */
 	False,			/* bDefaultDevmode */
@@ -801,6 +805,8 @@
 	{"force unknown acl user", P_OCTAL, P_LOCAL, &sDefault.bForceUnknownAclUser, NULL, NULL, FLAG_GLOBAL | FLAG_SHARE},
 	{"inherit permissions", P_BOOL, P_LOCAL, &sDefault.bInheritPerms, NULL, NULL, FLAG_SHARE},
 	{"inherit acls", P_BOOL, P_LOCAL, &sDefault.bInheritACLS, NULL, NULL, FLAG_SHARE},
+	{"inherit owner", P_BOOL, P_LOCAL, &sDefault.bInheritOwner, NULL, NULL, FLAG_SHARE},
+	{"inherit group", P_BOOL, P_LOCAL, &sDefault.bInheritGroup, NULL, NULL, FLAG_SHARE},
 	{"guest only", P_BOOL, P_LOCAL, &sDefault.bGuest_only, NULL, NULL, FLAG_SHARE},
 	{"only guest", P_BOOL, P_LOCAL, &sDefault.bGuest_only, NULL, NULL, 0},
 
@@ -1808,6 +1814,8 @@
 FN_LOCAL_BOOL(lp_blocking_locks, bBlockingLocks)
 FN_LOCAL_BOOL(lp_inherit_perms, bInheritPerms)
 FN_LOCAL_BOOL(lp_inherit_acls, bInheritACLS)
+FN_LOCAL_BOOL(lp_inherit_owner, bInheritOwner)
+FN_LOCAL_BOOL(lp_inherit_group, bInheritGroup)
 FN_LOCAL_BOOL(lp_use_client_driver, bUseClientDriver)
 FN_LOCAL_BOOL(lp_default_devmode, bDefaultDevmode)
 FN_LOCAL_BOOL(lp_nt_acl_support, bNTAclSupport)
diff -ur ../samba-base2/smbd/open.c source/smbd/open.c
--- ../samba-base2/smbd/open.c	Sat Mar  1 02:56:20 2003
+++ source/smbd/open.c	Fri Oct  3 12:07:56 2003
@@ -1079,8 +1079,10 @@
 	if (action) {
 		if (file_existed && !(flags2 & O_TRUNC))
 			*action = FILE_WAS_OPENED;
-		if (!file_existed)
+		if (!file_existed) {
 			*action = FILE_WAS_CREATED;
+			inherit_owner_byfile(conn, fsp);
+		}
 		if (file_existed && (flags2 & O_TRUNC))
 			*action = FILE_WAS_OVERWRITTEN;
 	}
@@ -1263,6 +1265,8 @@
 				return NULL;
 			}
 
+			inherit_owner_byname(conn, fname);
+
 			if(vfs_stat(conn,fname, psbuf) != 0) {
 				file_free(fsp);
 				return NULL;
@@ -1399,3 +1403,104 @@
 
 	return fsp;
 }
+
+
+
+/*
+  return a parent path from a filename
+*/
+static char *find_parent_path(const char *name)
+{
+	char *p, *ret;
+
+	ret = strdup(name);
+
+	if (!ret) return NULL;
+
+	p = strrchr(ret, '/');
+	if (!p) {
+		free(ret);
+		return strdup(".");
+	}
+
+	*p = 0;
+	
+	return ret;
+}
+
+
+/*
+  handle built in inheritance from parent directory for files and directories
+  inherit via open file descriptor
+*/
+static void inherit_owner_fd(struct connection_struct *conn, const char *name, int fd)
+{
+	uid_t owner;
+	gid_t group;
+	char *parent_path;
+	SMB_STRUCT_STAT st_parent, st_file;
+
+	if (!lp_inherit_owner(SNUM(conn)) && !lp_inherit_group(SNUM(conn))) {
+		return;
+	}
+
+	parent_path = find_parent_path(name);
+	if (!parent_path) return;
+
+	if (conn->vfs_ops.stat(conn, parent_path, &st_parent) != 0) {
+		free(parent_path);
+		return;
+	}
+	free(parent_path);
+
+	if (conn->vfs_ops.fstat(conn, fd, &st_file) != 0) {
+		return;
+	}
+
+	if (lp_inherit_owner(SNUM(conn))) {
+		owner = st_parent.st_uid;
+	} else {
+		owner = st_file.st_uid;
+	}
+
+	if (lp_inherit_group(SNUM(conn))) {
+		group = st_parent.st_gid;
+	} else {
+		group = st_file.st_gid;
+	}
+
+	if (owner == st_file.st_uid && 
+	    group == st_file.st_gid) {
+		return;
+	}
+
+
+	become_root();
+	fchown(fd, owner, group);
+	unbecome_root();
+}
+
+/*
+  handle built in inheritance from parent directory for files and directories
+  inherit by name (for directories)
+*/
+void inherit_owner_byname(struct connection_struct *conn, const char *name)
+{
+	int fd;
+
+	fd = open(name, O_RDONLY|O_DIRECTORY);
+	if (fd == -1) return;
+
+	inherit_owner_fd(conn, name, fd);
+
+	close(fd);
+}
+
+/*
+  handle built in inheritance from parent directory for files and directories
+  inherit via open file descriptor
+*/
+void inherit_owner_byfile(struct connection_struct *conn, files_struct *fsp)
+{
+	inherit_owner_fd(conn, fsp->fsp_name, fsp->fd);
+}
diff -ur ../samba-base2/smbd/reply.c source/smbd/reply.c
--- ../samba-base2/smbd/reply.c	Fri Sep 12 11:46:49 2003
+++ source/smbd/reply.c	Sun Sep 28 15:52:04 2003
@@ -3636,6 +3636,8 @@
 		return map_nt_error_from_unix(errno);
 	}
 
+	inherit_owner_byname(conn, directory);
+
 	return NT_STATUS_OK;
 }
 
diff -ur ../samba-base2/smbd/trans2.c source/smbd/trans2.c
--- ../samba-base2/smbd/trans2.c	Fri Sep 12 11:46:49 2003
+++ source/smbd/trans2.c	Sun Sep 28 15:52:31 2003
@@ -2950,6 +2950,9 @@
 		return(UNIXERROR(ERRDOS,ERRnoaccess));
 	}
 
+
+	inherit_owner_byname(conn, directory);
+
 	/* Realloc the parameter and data sizes */
 	params = Realloc(*pparams,2);
 	if(params == NULL)