Ok so say I want a folder to have a readonly user access, and also a readable user access (via FTP), what on earth do I do?
This is probably the control panel confusing me.
Just create the folder via FTP. I believe standard permission will work for your example, or you can CHMOD via your FTP client if you need special permissions. DH's panel doesn't have any way to create folders or stuff like that as you might find in Cpanel - you have to do it through an FTP client.