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Folder Level Security Permission

I want to create folder level permission as my requirement is, the document will be uploaded in document library with 0-5 level folder where "0" indicate "access to all" and "5" indicate "highly restricted" where else if document is uploaded in 2 level folder, the user who are having permission level 3 and above can view and contribute in the document where else level 1 wont be able to access 2 and above folders
so i am trying to used folder level permission but whenever i add the user in the particular folder by using manage permission, its not working as the user are able to access all the folder in the document library  
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2 Solutions
Justin SmithSr. System EngineerCommented:
When it comes to security issues, if there is a problem, 95% of the time its a problem with the set up and not SharePoint.

Verify the user doesn't have permissions on all the other individual folders in the Library.  What you are trying to do will require that EVERY folder in the library uses UNIQUE permissions, not inherited from the Library (which is the default).
At the Librarary level , the site permission override by default

You have to stop inheriting from the site permissions first and manage the permissions at that level

That can be very tricky and you might loose access to the library yourself

make sure you give yourself fulll access to the library before you start removing access .

Best of luck.
You can use a nice tool named SUSHI
from codeplex to give you a better understanding of the Library level security.

Please note that would require a server install .

prdeshpandeAuthor Commented:
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