For each folder you have the possibility to restrict reading and writing by changing the acces rights of the folders for seperate member groups. But there is no possibility to restrict the main document level (the level that starts when you switch to "documents"). That means each member can create new folders and can upload documents to the main level (and perhaps can delete folders!!!). I think this is a gap in the access rights manangement of projectplace and should be filled with an appropriate function.
Without this feature the access control system really has a major flaw: if you create a group where you put external members and create a folder which is the only one they should see, and someone else create a folder at the top level and store confidential documents there, the external members will be default see its content. I consider this even more a bug and safety problem than a feature request and I hope it will be fixed ASAP.
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Karolina stated
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Karolina Wicksén Jackson-Ward
It is not in our pipe to change the way access rights function in Projectplace. We are releaseing a new report to make an easier overview of who sees what though. You can read more about that here: http://projectplaceideas.wordpress.com/2010/11/09/release...
Best regards,
Karolina