Category and User management

I’m thinking wordpress-mu-1.0 = version 1.0 of wordpress.

What I’m looking for is the ability to assign users to certain category or blog and only ability to manage what is assigned. For example, I like to setup:

https://www.domain.com/dept1 –> user1 (as administrator/editor)
https://www.domain.com/dept2 –> user2 (and so on…)

Is this possible with the version I’m using or is this possible with the current version of WordPress? Thank you.

Regards,

— Mike