When you use xcopy to copy files or a directory tree structure, xcopy strips off file attributes by default. That is, if a file had the read-only attribute set, once it is copied, that attribute is lost. To keep (apply) the original attributes to the copied files, use the /k parm. Issue command xcopy /? to get a listing of all the parameters available for this program and their meanings. The /? parm is standard in most modern exectuables. /help usually works also.

If you have NTFS and you want to copy and keep the permissions asis, use scopy. Scopy is part of the NT resource kit.

NTFS Tips:

Managing Shared Resources and Resource Security
Choosing Between FAT and NTFS
Web versus NTFS Permissions
Getting the Most from IIS Security
NTFS Security, Part 2: Implementing NTFS Special Permissions on Your Web Site
Getting the Most from IIS Security
NTFS Permissions
Cancel an NTFS conversion
NT equivalents of NetWare Rights
Access NTFS from DOS, Win95 or Win98 using NTFSDOS driver
NTFS Last Access TimeStamp
xcopy - keep attributes
How To Remove Files with Reserved Names such as LPT1 or PRN
NTFS Metadata files
Disable NTs 8.3 aliases for LFNs under NTFS
Streams displays which NTFS files have alternate streams content
VolumeID changes NT and FAT volume IDs
Create a NTFS partition over 4GB during installation
Windows NT NTFS Directory Compression

You need the tools in the Resource Kit if you have workstation and its a MUST if you are supporting workstation.