Apply NTFS Permissions to folders and sub-folders

I am trying to have a folder with a username created with 2 subfolders.  I need to have the folder grant a specific user read-only access to the folder while still retaining the inherited permissions.  One of the subfolders need to grant the user Write access.  So the structure will look like this:

c:\ftp (not listed in ACL)
c:\ftp\username (ReadOnly)
c:\ftp\username\ToUser (readonly)
c:\ftp\username\FromUser (write)

Now, I've grabbed code from other posts and got it almost working.  The problem I have is the permissions are being applied correctly to the subfolders, but the user-named folder lists the user in the ACL, but they have no effective permissions.

Here is the code that calls the function:

AddDirectorySecurity((userDirectory), Me.AccountName.Text, FileSystemRights.ReadAndExecute, AccessControlType.Allow)

Select allOpen in new window

Then  here is the code for the function:

Sub AddDirectorySecurity(ByVal FileName As String, ByVal Account As String, ByVal Rights As FileSystemRights, ByVal ControlType As AccessControlType)

        ' Get a DirectorySecurity object that represents the current security settings.
        Dim dSecurity As DirectorySecurity = Directory.GetAccessControl(FileName)

        ' Add the FileSystemAccessRule to the security settings (**following is one line of code**).
        dSecurity.AddAccessRule(New FileSystemAccessRule(Account, Rights, (InheritanceFlags.ContainerInherit + InheritanceFlags.ObjectInherit), PropagationFlags.InheritOnly, ControlType))

        ' Set the new access settings.
        dSecurity.SetAccessRuleProtection(True, True)
        Directory.SetAccessControl(FileName, dSecurity)

Select allOpen in new window

I can't figure out why my top username folder isn't getting the accesspermissions set on them.