Xp ACLs; I need another pair of eyes

[DelJo63]

Two modules at \cygwin\bin: sed.exe and ls.exe
ls will run ok, sed gets a permission error and BOTH have the same ACLs entries.

Directory traversal can't be the issue as LS will run.

what am I missing here?

cacls sed.exe
C:\cygwin\[COLOR="Red"]bin\sed.exe[/COLOR] LTBEARD\nMaster:(special access:)
                                      STANDARD_RIGHTS_ALL
                                      DELETE
                                      READ_CONTROL
                                      WRITE_DAC
                                      WRITE_OWNER
                                      SYNCHRONIZE
                                      STANDARD_RIGHTS_REQUIRED
                                      FILE_GENERIC_READ
                                      FILE_GENERIC_WRITE
                                      FILE_GENERIC_EXECUTE
                                      FILE_READ_DATA
                                      FILE_WRITE_DATA
                                      FILE_APPEND_DATA
                                      FILE_READ_EA
                                      FILE_WRITE_EA
                                      FILE_EXECUTE
                                      FILE_READ_ATTRIBUTES
                                      FILE_WRITE_ATTRIBUTES

                      BUILTIN\Users:R
                      Everyone:R
                      BUILTIN\Administrators:F
                      LTBEARD\Jeff:F
                      NT AUTHORITY\SYSTEM:F
c:\cygwin\[COLOR="Blue"]bin\ls.exe[/COLOR] LTBEARD\nMaster:(special access:)
                                     STANDARD_RIGHTS_ALL
                                     DELETE
                                     READ_CONTROL
                                     WRITE_DAC
                                     WRITE_OWNER
                                     SYNCHRONIZE
                                     STANDARD_RIGHTS_REQUIRED
                                     FILE_GENERIC_READ
                                     FILE_GENERIC_WRITE
                                     FILE_GENERIC_EXECUTE
                                     FILE_READ_DATA
                                     FILE_WRITE_DATA
                                     FILE_APPEND_DATA
                                     FILE_READ_EA
                                     FILE_WRITE_EA
                                     FILE_EXECUTE
                                     FILE_READ_ATTRIBUTES
                                     FILE_WRITE_ATTRIBUTES

                     BUILTIN\Users:R
                     Everyone:R
                     BUILTIN\Administrators:F
                     LTBEARD\Jeff:F
                     NT AUTHORITY\SYSTEM:F