Special permissions for existing folder structure

I have an existing share with many nested folders and existing files but I would like to permission the root folder (and apply these to subfolders and files) so that users can create/modify/delete files in any of the subfolders but not create/delete any folders. What special permissions do we need to apply to the root in order to accomplish this?
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1.  Right-click on the root folder -> Properties -> Security tab -> Advanced button.  
2.  Click add and select the users or groups you want to grant permissions to.  
3.  In the "Apply onto:" drop down, select "Files only"
4.  Grant the group Create Files/Write Data along with the three Read permissions.
5.  Click the "Replace permission entries..." box to propagate these settings to subfolders.

Definitely test this out as I'm running through this mentally.
DJS_ITAuthor Commented:
I tried this but it only applies existing files. If a user tries to create a new file with those permissions they are denied, because they do not have create files/Write Data permission to the folder.
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I just tested this and I was able to write files to the root folder and subfolders, but wasn't able to delete existing files.  Are you sure you followed step 4 above (granting Create Files/Write Data)?
DJS_ITAuthor Commented:
Users should be able to create/delete files but not folders.
Verify that the user you're testing with isn't a member of another group listed in the ACL that has greater permissions than what I listed above.  Specifically, on my server, the user I was testing with was a member of the localbox\Users group, so I had to pull the Users group from the ACL.

After doing this I changed the "Apply onto" drop down to "This folder, subfolders, and files" and the permissions I allowed the account are as follows:

Traverse Folder/Execute File - Allow
List Folder/Read Data - Allow
Read Attributes - Allow
Read Extended Attributes - Allow
Create Files/Write Data - Allow
Read Permissions - Allow

I'm able to create files with my test user, but I can't create/delete folders.
DJS_ITAuthor Commented:
OK we figured this out. The special permissions are:

Files Only
Folders and subfolders
     Modify minus Create Folders / Append Data

This allows users to create/delete files but not folders.
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