file permissions issues on creation with cygwin 1.5.5-1?

["Steven Hartland" <killing at barrysworld dot com>]

I've been having a number of issue with cygwin since install.
I've gone though all the usual sources before asking but cant
seem to get any closer to solving the issue.
Im currently seeing two seperate problems which both turn out
to be file permission based.
Setup:
Windows XP, NTFS, CYGWIN=ntsec, cygwin 1.5.5-1

Issues:
1. rsync partial file updates fails with:
rename failed ... permission denied
2. execution of an application extracted under cygwin fails
random error ( it cant access its dll in the local dir )

>From my investigations is appears that cygwin is maintaining
the "default" permissions that should be inherited from the
current dir / parent directory. The core cause for both the errors
appears to be the lack of access to the created files by "SYSTEM".

All the standard permission for the current user / or owner of
the files seems to be correct but its the "hidden" permissions
or lack of that are causing the issues.

So where do I go from here? Has anyone else seen this
behaviour, knows a fix?

    Regards
    Steve

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