Windows – Failure to copy files with ownership/ACL information on a Windows Server 2008 R2 machine

I'm attempting to copy a directory tree, maintaining its ownership information using the command:

XCOPY S:\ProjectsDefault\Template\admin S:\Projects\00\111\admin /S /E /I /O

the command gives an Access denied error message, and while it does create the directory tree, the ownership and ACL information is not copied.

This is being done on a Windows 2008 R2 Server which has mounted a share from a Windows 2003 R2 domain controller. The user has been been granted full access to the share and is a member of the Domain Admins security group.

Oddly enough, the command does work if performed on a different (Windows 2003 R2 Server). (It also works if done using the Domain Administrator account on the 2008 server.)