Anyone can pls help me, whereby I need to prevent the users from being able to delete a specific folder in Windows 7, but still have read/write/execute permissions on that folder?
Also I would like to restrict the user's options in terms of software he/she wants to install, with a pre-defined list of the allowed software?


You need to create a different set of permissions. Right click the folder, properties, security tab. Use the advanced button to access additional options. Click Add, Assign permissions to "this folder" and a different set of permissions to "subfolder and files".

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