Sharepoint Permissions Question: Unique Permissions for sub folders?

I have a folder say 'Projects 2010' and several subfolders under this folder like 'Disaster Recovery', R&D, Infrastructure etc

I want to be able to give user say John access to R&D but he shouldn't have access to 'Disaster Recovery' and 'Infrastructure folders'.

How do I do this?

I tried giving unique permissions to the folder (say R&D) and noticed that the user had access to all the other subfolders under 'Projects 2010'?

Please suggest solution? I did do the dont inherit permissions from parent and all the basic stuff!
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If you send the user the URL of the subfolder, then it is not necessary to give him permissions on the parent folder as well.
The users were probably added with Limited Access, right? This is by default: when you add a user to an item from the site (list,library,folder, etc.), he is automatically added at site level (and all items inheriting from site) with Limited Access permissions. This does not mean that he can access those resources.

Yes, sharepoint allows unique permissions on subfolders, however, this is not recommended.
The recommended way of working (and easier to manage from my point of view) is to create different document libraries and to give access at document library level (not a single library with many folders and each folder with its own permissions list).
Also, using groups is easier that named members (you just need to keep track of a group not many named users) .
if user is able to see those folders, than he must have permissions there. If he is not namelly added, he probably belongs to a SharePoint or domain group that is listed there.
darthvader747Author Commented:
Do we have to give permissions to the parent folder and the subfolder in order for the user to have access to the sub folder? After all the user probably needs to go to the main folder to reach the sub folder

Also, I removed all groups from the subfolder and just add users directly and they automatically got added to all the other folders! Very strange

Does sharepoint allow unique permissions on subfolders?
you cant hide a folder for a user, u can prevent him from modifications
create  a new permission group with Read permisson.
add that user to that group and give restrcited permissons.
hope it 'll work out
this works perfectly...
create a group called FolderViewers and put all the users whom you want to give permissons to view folder (sub folders i mean)
click on R&D Manage Permissons,  in the Permissions dialog click on the Actions
Actions -> Edit Permissons.  a pop up will come click ok.
select all the other user groups except the FolderViewers and in Actions, click Remove users permissions.

The user can only see subfolders which he has permissons.
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