In tip 400, I described two methods of setting up user directories on your server.
If you also want to grant the user the ability to create and delete subdirectories within their folder, add Change permission for Creator Owner to the parent directory and replace permissions on subdirectories. Since the user is not the Creator Owner of their top level directory, they will not be able to delete it. Any new subdirectories they create will inherit Creator Owner (and other permissions such as \[RWX\]\[RWXD\] that you set on the parent folder) allowing them to only delete the subdirectories that they create.
For novice users:
In Explorer, right click on the Parent Folder ( c:\Users ) and press Security / Permissions. Click the Add button and double-click Creator Owner. In the Type of Access: drop-down list, select Change and press OK. Check Replace Permissions on Subdirectories. You may uncheck Replace Permissions on Existing Files since they already have RWXD. Click OK and OK to confirm.
An alternate method is to open a CMD prompt and type:
cacls <drive:>\Path_to_Parent_Folder /T /E /C /G "Creator Owner":C