Why can't users upload files in this asset? I've two user groups; admin and user. The User group does not have access to the Assets tab, which stops them from just browsing all the assets that anyone might have uploaded - which is what I want; no random looking about in the Assets resources.

I've a field type 'Featured Image' that is an asset; and it is restricted to a single upload folder, file type image, with an upload location set to {slug} - this means it will upload files into a folder named the same as the slug for the entry in which it's being used.

It works fine for admins who have privileges to see Assets. I can not upload anything in this field with a user of type User.

This behaviour makes Asset fields essentially useless unless the user group also has privileges to view (and upload/edit) all assets site-wide. Because 'upload' is a child privilege of 'view assets' I can't give the upload rights without also giving them 'browse all the assets everywhere' rights.

I'd like these restricted users to be able to upload in that field.

Oddly, I have a Matrix field called Gallery which has an asset field inside it, set to file type image, single upload directory; {owner.slug}/gallery/

That asset field works fine for these users, and they are able to upload into it.

Anyone have any ideas?

I'd hoped this would be fixed in 2.3, alas it seems not, unless there's something I need to change?

Here's my experience as a mini screencast, logged in as a restricted user type (no assets privileges): http://viewcreative.co.uk/DELETEME/uploading.gif And here's the filetype set up and permissions: http://viewcreative.co.uk/DELETEME/permissions.gif
Have you checked the user group permission settings page? There you should be able to select which Asset Sources users in a specific user group are able to view, upload files to, etc. If at least one Asset Source is selected then the Assets navigation item will appear for users in that group, otherwise it will be hidden.