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I really cant tell what your doing with the video but I will outline the actions one needs to do to apply permissions.
If you create a new subcat its not going to inherit permissions automatically
Here are the steps needed.
1. Create your new subcat and you can do one of two things. You can set permissions accordingly on the editcats page for that cat or go on to 2
2. edit the main cat hit dochildren and hit save.
Thats it all subcats will have the parent permissions.
So judging on the actions I am doing it works according to how dochildren is coded.
I think your talking about another issue here instead.
You are expecting the subcat to pick up the permissions of the parent always regardless of dochildren when you create a new cat.
If thats the case in the new beta 4.1 I have added that ability
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