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First, create a group for each directory (for example, the 'user1dir', 'user2dir', and 'user3dir' groups). Now add user 1 to the user1dir group, user 2 to the user2dir group, and user 3 to the user1dir, user2dir, and user3dir groups. Now set the owning group of /group/user1 to user1dir and set the permissions properly (770, for example), and do the same for the other folders (/group/user2 should be owned by user2dir, and /group/user3 should be owned by user3dir). It's a lot less complex than I'm making it sound - basically, you're creating a group for each group of users, and giving that group access to each directory, custom groups can be great for setting permissions of multiple users at a time in this way.
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