roles in WordPress 2.8.5

This allows me to set permissions by ‘post’ or ‘page’ but doesn’t appear to allow me to change the role functions of users?

I want to be able to say:
Subscribers can only read the information.
Authors can read and write.
Admins can do everything.

Additionally I would like to be able to add more roles and set the different permissions for these seperately.

That’s the point though, I can’t find that function now since installing 2.8.5, the option for ‘Role Manager’ (or whatever it used to be) now appears to be missing, or moved somewhere else and I can’t find it.

Under ‘Users’ I have:

‘Authors & Users’ – See each user and changed the role assigned
‘Add New’ – Manually add a new user
‘Your Profile’ – Change your own profile
‘Groups’ – I installed the suggested plugin

None of these option allow me to change what functions are applied to each Role though.