How can we allow users to create folder directly on a shared drive without allowing full control? WIndows 7

We have set up active directory to allow certain users to save files and folders into a shared drive but not delete or rename them.  Once the folder is created, they can also save files directly in the folder but they can't create the folders directly from the SAVE AS file dialog.  They can't and shouldn't be able to delete or rename anything in the folder.

 Right now their workflow is to create a folder in MY DOCUMENTS and cut and paste it into the shared drive then use our reporting application to save files under that folder.  We'd like to allow them to create a folder in the restricted drive directly from the application using the standard Save File Dialog of Windows 7 (64).  We get an error saying the file can't be created under that name.  A "NEW FOLDER" is created however, but can't be renamed.

We suspect this is a symptom of Windows creating a temporary folder during the save as process which the user is not allowed to change but this is outside my area of expertise.

What we want is for the user to be able to create a folder and name it directly in the restricted drive without having to drag it from a nonrestricted location.

Here is a picture of permissions for one user.


Any suggestions would be appreciated.

Thanks!