Thank you, so what I ended up doing was giving localadmin back the ownership of the drive. Then I changed the computer name to new name and gave ownership back to domain account. That somehow tricked it into working . Do not ask me what it did but but I think there was just something corrupt in its relationship with the local accounts.
You may have to go into the permission area of the ones that you are having problems with and first, break inheritance
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and then assume ownership gain of those areas. If you do it at the TLF, it may take care of all of the subfolders. We have this problem on occasion with customers who sometimes lose their rights to their own backup folder on the server. It is a simple fix, but, depending on how much data you have, it could take awhile. Good luck.