If you are referring to the fact that on B machine,  B is able to add/delete files using windows explorer or something similar, then that is correct. All these share rights are about whether you will be able to change the contents on the server or not.

Any new additions to file system(ifolder directory) should not get uploaded to the server if the user has only Read-Only rights.

If this is not the case, you are still able to upload new files as a user who has only read rights, please let us know the exact way to reproduce the same.

Yes i was referring to the window explorer being able to delete and modify.  Okay now i understand those rights only affect the server. But still if you delete a file in machine B, shouldn't the next time it goes to sync download that deleted file again from the server, as the clients see it as missing? Also do you know which code file in the source packages that set the read only permissions folder in windows. Thank You so much for clearing it up.

Your point is valid, but there is one another perspective to the same. Say, i have downloaded entire shared iFolder and i don't want some files from that(probably they occupies lot of my local space on my local disk or i'm not interested in any changes to those files),  iFolder lets you delete these files locally and not try to download them back again.

Only corner case that needs to be checked is, when some changes take place for these files on server or iFolder performs a consolidated sync for these. At the moment i'am not able to recollect as to whether it will download or not, probably you can give it a try since you have that working environment.

What do you mean by corner case?

If client and server changelog entries don't match, a consolidated sync is performed and i was referring to that. let me check this and get back to you with a correct answer.