Hi Michael,
What you observed is correct.
The superuser account has the following Roles Assigned: ROLE_ADMINISTRATOR, ROLE_SUPERUSER
The regular account has the following Role Assigned: ROLE_USER
That is the reason the regular account cannot see all folders. But regular accounts can run canned reports and Ad Hoc reports.
You have to grant the ROLE_REPORT_DESIGNER role to a regular account to create an Ad Hoc reports.
Thanks,
Silvio