I need to create users that can only submit and read their own issues within a single project in my OnDemand instatnce.
You will have to use Project permissions.
https://confluence.atlassian.com/display/JIRA/Managing+Project+Permissions
Give the user Create permission. Also, give the "Browse" permission to reporters. Make sure the browse is not available to any groups/roles where that user is a member of!
I have added a group that my test user is a member of to the "Browse Projects" and "Create Issues" with no luck. If I add that user to the "Users" group, he sees all projects. If I take him out of the "Users" group, he cannot login.
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Two mistakes here. You will have to add him to "Users" group because he needs to login. But you also will have to stop using that group in the browse permission of other projects.
Secondly, you can add him to other groups but don't use them in the "Browse project" permission. If you do that, he will be able to see all issues in that project. Just use "reporter" in the browse permission. If there are other users who wants to see the project, add them in to separate group and add that group in the browse permission.
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