The "Special Permissions" security option in Windows operating systems allows you to determine which users will have access to certain files or folders, and what actions they are allowed to perform with the selected file or folder. For example, you can allow or deny a user the right to "Delete" the selected file or folder, "Take Ownership" or "Execute the File." To enable "Special Permissions" for the "Application Data" folder you first have to navigate to the "Application Data" folder. Since the "Application Data" folder is hidden, you'll also need to adjust the "Folder Options" settings to view hidden folders.

Navigate to the Application Data Folder in Windows 7
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Open the "Start" menu. Type "explorer" in the "Search" box and press "Enter" to launch Windows Explorer.
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Click "Computer" in the left-side window panel.
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Double click the "Local Disk (C:)" drive in the right-side window panel. Double click the "Users" folder. Double click the appropriate user name folder.
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Open the "Organize" dropdown menu and select "Folder and search options" to open the "Folder Options" dialog box.
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Go to the "View" tab. Select "Show hidden files, folders, and drives." Click "Apply." Click "OK."
Navigate to the Application Data Folder in Windows XP
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Open the "Start" menu. Select "Run." Type "explorer" in the box and click "OK" to launch Windows Explorer.
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Click "My Computer" in the left-side window panel.
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Double click the "Local Disk (C:)" drive in the right-side window panel. Double click the "Documents and Settings" folder. Double click the appropriate user name folder.
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Open the "Tools" menu and select "Folder Options" to open the "Folder Options" dialog box.
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Go to the "View" tab. Select "Show hidden files and folders." Click "Apply." Click "OK."
Enable Special Permissions
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Right click on the "AppData" (Windows 7) or "Application Data" (Windows XP) folder and select "Properties" from the shortcut menu.
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Go to the "Security" tab. Click "Advanced." Go to the "Permissions" tab.
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Click on the user account you want to set special permissions for. Click "Edit."
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Put a check mark next to "Allow" for each special permission option you would like to enable for the selected user.
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Click "OK" to save your new settings. Click "OK" twice more to close out of each of the open dialog boxes.