diff --git a/lib/plugins/plugin.inc.php b/lib/plugins/plugin.inc.php
index 859ac82..8e6840e 100644
--- a/lib/plugins/plugin.inc.php
+++ b/lib/plugins/plugin.inc.php
@@ -364,7 +364,7 @@ class KTPlugin {
     }
 
     function stripKtDir($sFilename) {
-        if (strpos($sFilename, KT_DIR) === 0) {
+        if (strpos($sFilename, KT_DIR) === 0 ||strpos($sFilename, realpath(KT_DIR)) === 0) {
             return substr($sFilename, strlen(KT_DIR) + 1);
         }
         return $sFilename;
diff --git a/plugins/ktcore/KTPermissions.php b/plugins/ktcore/KTPermissions.php
index 57627a0..b5d5c4d 100644
--- a/plugins/ktcore/KTPermissions.php
+++ b/plugins/ktcore/KTPermissions.php
@@ -432,6 +432,35 @@ class KTRoleAllocationPlugin extends KTFolderAction {
             'redirect_to' => array('main', sprintf('fFolderId=%d', $this->oFolder->getId())),
         );
         $this->oValidator->notErrorFalse($oTransaction, $aOptions);
+
+        // inherit parent permissions
+        $oParentAllocation = RoleAllocation::getAllocationsForFolderAndRole($this->oFolder->getParentID(), $role_id);
+        if (!is_null($oParentAllocation) && !PEAR::isError($oParentAllocation))
+        {
+        	$oPD = $oParentAllocation->getPermissionDescriptor();
+
+        	$aAllowed = $oPD->getAllowed();
+        	$userids=$aAllowed['user'];
+        	$groupids=$aAllowed['group'];
+
+        	// now lets update for the new allocation
+        	$oPD = $oRoleAllocation->getPermissionDescriptor();
+
+        	$aAllowed = $oPD->getAllowed();
+
+        	$aAllowed['user'] = $userids;
+        	$aAllowed['group'] = $groupids;
+
+        	$oRoleAllocation->setAllowed($aAllowed);
+        	$res = $oRoleAllocation->update();
+        	
+        	if (PEAR::isError($res) || ($res == false)) 
+        	{
+				$this->errorRedirectToMain(_kt('Failed to create the role allocation.') . print_r($res, true), sprintf('fFolderId=%d', $this->oFolder->getId()));
+			}
+        }
+        
+        // regenerate permissions
         
 		$this->renegeratePermissionsForRole($oRoleAllocation->getRoleId());
 
diff --git a/setup/upgrade.php b/setup/upgrade.php
index 2fde263..662e740 100644
--- a/setup/upgrade.php
+++ b/setup/upgrade.php
@@ -434,7 +434,7 @@ function resolveTempDir()
 	{
 		$dir='c:/kt-db-backup'; 
 	}
-	
+	$oKTConfig =& KTConfig::getSingleton();
 	$dir = $oKTConfig->get('backups/backupDirectory',$dir);
 	
 	if (!is_dir($dir))