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Folder Permissions question

This is such a simple question but one that causes me grief every time.

We have a group of users who should be able to update content in only one folder (and sub folders). For example default/main/br/workarea/development/templatedata/primary/research/data/stocks (and below) If I create a new group in TS and allow that group to modify that folder they still can't because they can't update the parent. If I allow them to update the parent, then all folders below the parent are modifiable.

What am I doing wrong?