I prefer the following code snippet as it creates a folder inheriting default rights - which seems the right thing to do - other software / the user might have setup specific inheritable rights on a directory for a legitimate reason - then adds a Full Control explicit access entry for the built in "Users" group.
BOOL CreateDirectoryWithUserFullControlACL(LPCTSTR lpPath)
{
if(!CreateDirectory(lpPath,NULL))
return FALSE;
HANDLE hDir = CreateFile(lpPath,READ_CONTROL|WRITE_DAC,0,NULL,OPEN_EXISTING,FILE_FLAG_BACKUP_SEMANTICS,NULL);
if(hDir == INVALID_HANDLE_VALUE)
return FALSE;
ACL* pOldDACL;
SECURITY_DESCRIPTOR* pSD = NULL;
GetSecurityInfo(hDir, SE_FILE_OBJECT , DACL_SECURITY_INFORMATION,NULL, NULL, &pOldDACL, NULL, (void**)&pSD);
PSID pSid = NULL;
SID_IDENTIFIER_AUTHORITY authNt = SECURITY_NT_AUTHORITY;
AllocateAndInitializeSid(&authNt,2,SECURITY_BUILTIN_DOMAIN_RID,DOMAIN_ALIAS_RID_USERS,0,0,0,0,0,0,&pSid);
EXPLICIT_ACCESS ea={0};
ea.grfAccessMode = GRANT_ACCESS;
ea.grfAccessPermissions = GENERIC_ALL;
ea.grfInheritance = CONTAINER_INHERIT_ACE|OBJECT_INHERIT_ACE;
ea.Trustee.TrusteeType = TRUSTEE_IS_GROUP;
ea.Trustee.TrusteeForm = TRUSTEE_IS_SID;
ea.Trustee.ptstrName = (LPTSTR)pSid;
ACL* pNewDACL = 0;
DWORD err = SetEntriesInAcl(1,&ea,pOldDACL,&pNewDACL);
if(pNewDACL)
SetSecurityInfo(hDir,SE_FILE_OBJECT,DACL_SECURITY_INFORMATION,NULL, NULL, pNewDACL, NULL);
FreeSid(pSid);
LocalFree(pNewDACL);
LocalFree(pSD);
LocalFree(pOldDACL);
CloseHandle(hDir);
return TRUE;
}