AFAICT, what you're trying to do requires ACL-type access controls assignable on a per-object basis.  Linux does not natively support ACL's or per-object access.
SELinux adds that level of controls, and might allow the kind of environment you're looking for.  If you use LDAP for the authentication/authorization backend, you should be able to delegate the administration as well.
What you're trying to do sounds like emulating the ActiveDirectory delegated administration feature, and it's something I haven't been able to find any equivalent to in Linux.

==Joseph++

Bryan.ONeal@asu.edu wrote:
> I have a box I am setting up for my office, it is basically a file server and 
> I am using FC3 for now.  What I would like to do is delegate some people the 
> ability to add users and give those users permissions to a set of subfolders 
> in a folder.  While giving another person similar permissions to add users and 
> allocate permissions to only another set of folders.
> 
> So I am not that good with Linux permissions, can I create a group such that 
> the admin of that group can add a user and said admin will only be able to 
> assign said user to that group?  And then modify permissions based upon the 
> restrictions of that group?
> 
> For example, say group the group "Golf" can have any combination of 
> permissions to any folder inside the Golf folder, but nothing outside of it?
> 
> I ask because I would like to teach the person who has decision over their 
> directory to administer it, but do not have complete faith that they will lock 
> down the users correctly, so I would like to restrict what they can do without 
> my intervention, but do not want to deal with every user addition/subtraction 
> or permission change..
> 
> BTW users of one set of folders will, as far as I know, never use another set.
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