I don't think that'll stop the user form going up, it'll just stop other users from being able to read that path. You would, I think, need to create a new group and user, and make sure that the only group this user belongs to is this new one. Otherwise all the other areas on your drive that have permissions set to something like 75* will let anyone in the group that owns the file read it.
Even after this, however, anything on your system that has permissions with anything other than a 0 as the final digit will allow this user at least read or execute access. Most of the things that are setup like this can and should be left that way, though, and it shouldn't be a problem. I suppose if the directory right above the one you want this user to access is set up not to let other groups see it (last digit is a 0) that may stop the user form entering it and therefore going any further up, lest he has the ability to just type the path into a terminal or address bar.
Man, am I rambling or what!? It's early for me...if I haevn't been clear let me know. If it doesn't work, or if I have mis-spoken, perhaps somebody else will chime in here with a more articulate response...
Good luck...
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