So you would think this would be obvious, right? I want to create a role that let’s my client have some administrative features, including setting up new users. But I DON’T want to burden the client with the ability to create administrators, a level which is actually higher than my client.

If this is so obvious, why did I have to search high and low in the codex, forums and plugins to find the answer?

Obliged to WordPress Answers from StackExchange. (Is that the same as stackoverflow, my favorite website?)

See the answer here, works flawlessly and exactly as stated. Simply copy the code into your functions.php file.

in between your <?php ?> tags

class JPB_User_Caps {

  // Add our filters
  function JPB_User_Caps(){
    add_filter( 'editable_roles', array(&$this, 'editable_roles'));
    add_filter( 'map_meta_cap', array(&$this, 'map_meta_cap'),10,4);
  }

  // Remove 'Administrator' from the list of roles if the current user is not an admin
  function editable_roles( $roles ){
    if( isset( $roles['administrator'] ) && !current_user_can('administrator') ){
      unset( $roles['administrator']);
    }
    return $roles;
  }

  // If someone is trying to edit or delete and admin and that user isn't an admin, don't allow it
  function map_meta_cap( $caps, $cap, $user_id, $args ){

    switch( $cap ){
        case 'edit_user':
        case 'remove_user':
        case 'promote_user':
            if( isset($args[0]) && $args[0] == $user_id )
                break;
            elseif( !isset($args[0]) )
                $caps[] = 'do_not_allow';
            $other = new WP_User( absint($args[0]) );
            if( $other->has_cap( 'administrator' ) ){
                if(!current_user_can('administrator')){
                    $caps[] = 'do_not_allow';
                }
            }
            break;
        case 'delete_user':
        case 'delete_users':
            if( !isset($args[0]) )
                break;
            $other = new WP_User( absint($args[0]) );
            if( $other->has_cap( 'administrator' ) ){
                if(!current_user_can('administrator')){
                    $caps[] = 'do_not_allow';
                }
            }
            break;
        default:
            break;
    }
    return $caps;
  }

}

$jpb_user_caps = new JPB_User_Caps();