All,
I've resolved my issues.
Checking out Scott Lowes' book "Mastering VMware vSphere 4" Chapter 9, he describes using Resource Pools to group VMs under the Hosts & Clusters view. By using the same names as the folders under VMs & Templates and adding the same permissions, I was able to force each user to use their own folder under VMs & Templates and only their Resource Pool under Hosts & Clusters. So now both views reflect each user's objects and their access controls are correct.
Items to take away from this lessen:
Use Resource Pools under Hosts & Clusters to manage Host defaults for users.
Use Folders under VMs & Templates to manage VMs ad Templates for each user (simpler view).
Thanks for the help,
Johnathan