I thought I had in my first post. Guess I should have gone into more detail. :-)
When the file permissions are printed out, it will show that the "Everyone" group has permissions on the file/folder. However, if you look in File --> Properties, the "Everyone" group does not show as having permissions on the file/folder. It seems to be in the tests I have done that if any auditing is enabled on the object, that it displays the "Everyone" in the file permissions. The behavior only shows up in Windows 2000 however.