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Thank you Mark. Your clarification is appreciated.
To go into further detail here...
When a folder is chmod 777, that means that anyone who has a hosting account on that particular server can access that folder.
chmod broken down:
First bit = User
Second bit = Group
Third bit = World (everyone)
Therefore, with chmod 777 everyone on that server can write to that folder.
This is a clear example of why suEXEC should be implimented as it allows for chmod 755 permissions, which are much more secure.
Unfortunately, many hosts do not support suEXEC and you have to deal with such issues. What you can do to protect yourself is to experiment with the permissions, like chmod 775, and by using the capabilities of an .htaccess file to help protect you.
Remember, the only secure server is the one at the bottom of the ocean. Diligence and knowledge are the best defenses we have.
Insanity can be defined as "doing the same thing over and over and expecting different results."
Stupidity is not a crime. Therefore, you are free to go.