I've created a state for files that have been determined are obsolete and should never be manufactured again.  The members of the Engineering group should still be able to view these files for historical reference purposes, but the Fabrication group should not, since they are not allowed to make them.

In the permissions for the Obsolete state, I made sure that the Engineering group is granted 'Read file contents' permission, but the Fabrication group does not have that right.  I also set the little green flag option (Ignore permissions in previous states) on the Obsolete state because I read here that the 'Read file contents' permission will be inherited from previous states if I don't use this option.  Seems reasonable, right?

Problem is that the Fabrication group can still see these files.  It seems that they are still inheriting the 'Read file contents' right even with the 'Ignore permissions in previous states' option enabled.  Anyone have a clue as to why this is?  The Obsolete state is rather pointless if I can't block access to it.