I have used the code below to allow Everyone access to a folder:
System.Security.AccessControl.DirectorySecurity sec =
System.IO.Directory.GetAccessControl(directory, AccessControlSections.All);
FileSystemAccessRule accRule = new FileSystemAccessRule("Everyone",
FileSystemRights.Modify,
AccessControlType.Allow);
sec.AddAccessRule(accRule); // setACL
sec.ResetAccessRule(accRule);
Now, the Everyone user is added to the folder, but not with any rights assigned. All the read, write, execute etc. checkboxes are not checked.
First thing I want to tell you is how I found this solution. This is probably more important than the answer because file permissions are hard to get correct.
First thing I did was set the permissions I wanted using the Windows dialogs and checkboxes. I added a rule for "Everyone" and ticked all boxes except "Full Control".
Then I wrote this C# code to tell me exactly what parameters I need to duplicate the Windows settings:
This gave me this line of output:
So the solution is simple (yet hard to get right if you don't know what to look for!):
This will make the checkboxes on the Windows security dialog match what you have already set for your test directory.