I can accept that as a reason, but frankly, how? One thing that has always annoyed me about XP is that the "Sharing and Security" tab should really just be called the "Sharing" tab.
The "Sharing and Security" menu item opens the Properties dialog for the selected item, with the "Sharing" tab pre-selected. The menu item is definitely misnamed.
The Security tab is next to the Sharing tab on the properties dialog, unless you've got Simple File Sharing turned on. For more information, see
http://support.microsoft.com/kb/304040According to that, Simple File Sharing doesn't reset the security of pre-existing files. You'll get more flexibility (at the expense of ease of use) by turning off Simple File Sharing -- it's under Tools / Folder Options / View in Windows Explorer.
Note that this is mostly from memory -- I only have Vista and 2003 immediately available to me right now.