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using Microsoft.Win32.Security;

private Boolean CreateDir(String strSitePath, String strUserName) {

       Boolean bOk;

       try {

              Directory.CreateDirectory(strSitePath);

              SecurityDescriptor secDesc = SecurityDescriptor.GetFileSecurity(strSitePath, SECURITY_INFORMATION.DACL_SECURITY_INFORMATION);

              Dacl dacl = secDesc.Dacl;

              Sid sidUser = new Sid (strUserName);

              // allow: folder, subfolder and files

              // modify

              dacl.AddAce (new AceAccessAllowed (sidUser, AccessType.GENERIC_WRITE | AccessType.GENERIC_READ | AccessType.DELETE | AccessType.GENERIC_EXECUTE , AceFlags.OBJECT_INHERIT_ACE | AceFlags.CONTAINER_INHERIT_ACE));

              // deny: this folder

              // write attribs

              // write extended attribs

              // delete

              // change permissions

              // take ownership

              DirectoryAccessType DAType = DirectoryAccessType.FILE_WRITE_ATTRIBUTES | DirectoryAccessType.FILE_WRITE_EA | DirectoryAccessType.DELETE | DirectoryAccessType.WRITE_OWNER | DirectoryAccessType.WRITE_DAC;

              AccessType AType = (AccessType)DAType;

              dacl.AddAce (new AceAccessDenied (sidUser, AType));

              secDesc.SetDacl(dacl);

              secDesc.SetFileSecurity(strSitePath, SECURITY_INFORMATION.DACL_SECURITY_INFORMATION);

              bOk = true;

       } catch {

              bOk = false;

       }

       return bOk;

} /* CreateDir */

The AceFlags determine the level of inheritance on the object.

And the DirectoryAccessType is used to create a AccessType with some permissions not in the AccessType enum.

I hope this is useful.