Thank You RSD Pro/Users!
PTC Technical Support had been attempting to help for much of the week and was breaking more than fixing by throwing access control Sledge Hammers at the problem, turning on Method Log Verbosity which crippled the speed of the Production... which locked up the Server.. which led to a Reboot, which Led to the Windchill Bug where the Vault flips itself to Read Only....
Today: Email by me to Exploder, 30 seconds later, Answer!
Jeff mentioned that RSD creates Folders automatically and needed ability to create folders. And that led to the Solution very quickly.