Ok, here is a list of things that you are allowed to do at each ninja rank. You have to follow these unless there is some kind of special exception which only admins/supermods may give.
Academy Student -- These are not even ninja of the village yet, still in training to become one. They attend their classes, and normally stay in the dorms of the academy. They are allowed to go into the village and they can visit the training areas around the village. They are not allowed out of the village at all without special permission. Academy students can learn how to do tree climbing training, though they have to attend a class for it first.
Genin -- These are the new ninja to the village, who are put into a squad with other genin and are under a sensei. They are only allowed out of the village with their sensei or if they are required for a mission of some sort. They can start learning to water walk, though they cannot master it. You have more control here over what you want to do, being able to do a lot more training without having to be taught as much.
Chuunin -- These are more experienced ninja of the village, being considered responsible enough to take duties for the village. Chuunin can be assigned their own missions to do by themselves or with a squad. They can master their water walking training, and learn a new chakra type at this level if they can. They are allowed to go from village to village on their own, but should have a good enough reason. It is at this rank that a person is allowed to make up their own custom made jutsu through RPing, though it still must be approved before they may use it. Chuunin can become a special type of ninja, such as ANBU or a teacher at the academy, but they must be very specialized and very well fit for the job, and approved by staff members.
Jounin -- These are the elite ninja of the village, having normally been ninja for quite some time, and having plenty of experience. They have freedom to do just about anything they want. They can go to any of the villages, and be assigned high risk missions. They can become ANBU, Hunter ninja, medical ninja, teachers, or sensei for the new genin. There isn't much you can't do, though check to make sure if you don't know.