There is no way with managed code. You can either create a directory o, in .NET 2.0, create a directory with specific security. There is no way to apply attributes as you create the directory. Given that the application of attributes would happen milliseconds after the creation the way you're doing it now, I don't really see the issue.

That said, there may be a way to do what you want with unmanaged code. I'd suggest getting the API Guide and looking at the available functions grouped by functionality, then look at the I/O related group(s) to see if there's a function that looks like it might be useful.