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I have just tested this patch with the World of Warcraft launcher (couldn't before due to a mismatch between 32-bit and 64-bit jpeg versions, and Gentoo masking out jpeg).
After SetFileSecurityW (L"H:\Games\World of Warcraft", 0x4, 0x1697c8) with the ACL "(A;OICI;GA;;;BU)", the permissions on the World of Warcraft directory are rwxr-x---, and the Launcher successfully starts the Downloader.