Thank you for your help and time! That is not exactly what I am looking for, though. I need to:
Create a folder, and then using user rights, limit testdude's right to only be able to read files located within the folder.
I have made the user account, testdude. My book says to access user rights I go through Computer configuration\Windows Settings\Security Settings\Local Policies\User Rights Assignment node of Group Policy. I have not been able to accomplish accessing the computer configuration.
My version of Windows 7 is Home Basic