Don't understand why Kevin's answer hasn't been accepted yet, here you go with a snip of the permissions that need to be enabled.
Have a look at this module- Administer Users by Role
These are the new permissions that come with the module -
1 )Access the users overview page
See the list of users at admin/people. Only users that can be edited are shown.
2) Create new users
Create users, at admin/people/create.
3) Edit users with no custom roles
Allows editing of any authenticated user that has no custom roles set.
4) Edit users with role XXX
Allows editing of any authenticated user with the specified role.
To edit a user with multiple roles, the sub-admin must have permission to
edit ALL of those roles. ("Edit users with no custom roles" is NOT needed.)
-The permission for cancel work exactly the same as those for edit.