Give users rights to folder structure

Hi Experts,
I need to come up with a model whereby I allocate access rights to a given user to certain folders on a file server.
The file server directory structure will typically be library, then multiple folders under library and the again multiple folders under each level 2 folder.
This structure I will have in a database that I write to where the super user creates additional folders. My challenge is to somehow give read.write access to a user to specific folders in this structure. Any idea where I should start or potential options
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AmericomConnect With a Mentor Commented:
Also, if you are doing this from scratch, here's what I would do:
1. Create a folder "Test"
2. Share this folder with the share name Test$
3. Assign permission to Domain Users or Authenticated Users Full
4. Click on the Security tab and assign these NTFS permissions
      a. Administrators(or Domain Admins) Full
      b. Assign Domain Users(or authenticated users) the List permission.
            Here you need to click on the Advanced button for this group and click the edit button,
            click on the "Apply onto" drop down button and select "This folder, subfolders and files"
            and deselect "Create Files" , "Create folders", and "Read Permissions"

You are all set for Level1

5. Create your level2 folders such as Test1, Test2, ..Test3
6. On each folder, you grant the approprate group with Modify access and of course the Administrators or Domain Admins group FUll

To prevent user from deleting/moving the folder he/she have access, you need to follow these steps:
1. Click on the Security tab of each folder, highlight the user group and click on the Advanced button
2. be sure to select the user group and click on Edit button
3. Verify On the "Apply onto" drop down button, it is selected "This folder, subfolder, and files"
4. Check the "Delete Subfolders and Files", make sure this is selected "Allow"
4. UnCheck the "Delete" box, make sure this is "Deny" and click OK OK etc.

espsAuthor Commented:
Americom, this is a very good  answer.
There are a few other issues that I did maybe not explain properly.
The entire structure of the folders, subfolders etc. is setup by a superuser from a developed vb app and not directly on the server. Allthough it would theoretically be possible to assign the rights as per your explanation, the client would want this done through the app.
Can what you have explained be done from
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