HI,

# Owned mode creates User Groups in one branch per site:
Site 1
- Registered Site 1
- Manager Site 1
-- Administrator Site 1

Site 2
- Registered Site 2
- Manager Site 2
-- Administrator Site 2

# Inherited mode creates them in original tree:
Registered
- Registered Site 1
- Registered Site 2
Manager
- Administrator
-- Administrator Site 1
-- Administrator Site 2
- Manager Site 1
- Manager Site 2
and so this one is useful when you need to set specific permissions and create sites dynamically... as they'll inherit automatically

Thanks for the reply, Klas!

So for a site like I'm trying to explain here, inherited mode is the right pick?

I'm going to setup a multisite, where one main site shows all content posted by the "sub sites". The sub sites only sees what is added through the sub site.

Main site (sees everything)
- Subsite A (sees only subsite A)
- Subsite B (sees only  subsite B)

etc.. 

?

I would say yes, but it would also work with owned, jsut you would have to set permissions separately for each site. But take note that this pertains to permissions (edit, create, delete..) and not to bizare Joomla view levels that have no inheritance so it does not matter how they are structured.