Ok this works, had to grant all the permissions first, then create a restricted users group and remove permissions.

Have you go it to work?

I have the requirement for certain user groups to not be able to read or modify a specific section of a site in the content tree. I've read the documentation and accessed the useradmin console and the permissions tab. It doesn't seem to matter what I do, when I log in as a user in the that group, I ...

I'm interested to know if anyone else has managed to get this working please? Official documentation suggests it should work in 6.2, but we're unable to configure this correctly to work and are currently engaged with support.

Not sure if this helps, but my experience is that user synchronization doesn't work in 6.1 and 6.2.