I reported this over in support.dnnsoftware.com but was told that this was not a bug but a feature.

1. Create a page
2. Add File Manager to that page
3. Create a user
4. Create a directory
5. Give user read / write permissions on that directory
6. Give user view permissions on the new page.
7. Login as new user
8. Try to upload the file
9. Get this error message

Can anyone tell me what I'm doing wrong?

DNN 7.0

Thanks for your help!