I tried it several different ways and Fugu was the only one that did weird things. However, I did find that it is a bug in the Fugu program itselfMaybe Dreamweaver explicitly sets the permissions of the files? Which FTP server are you using?
Try using a command-line FTP client and experiment logging in as each user and writing a file to the upload area. What permissions do they get?
https://lists.ccs.neu.edu/pipermail/scponly/2004-October/000621.html
This is an sftp issue, but you said you were using ftp - not the same thing. Do both users use sftp, or does one use regular ftp?
Oops sorry I was assuming sftp since (correct me if I'm wrong) FC3 only comes with sftp. But yes both users were using sftp in all applications.
sftp clients will often set the permissions of the uploaded file to the same permissions as the original file on the source computer. Regular ftp clients don't usually do this. You may be able to work around the problem at the client end. If all else fails, you could always set up a cron job to periodically set the group write bit on all files in that directory.
But now that I have set the group and the permissions to the directory to 2775 Apache doesn't like it and I get a 403 Forbidden error and I don't know why.
Do you have SELinux enabled?
Yes it is enabled. I've done the ls -aZ command and everything looks right. The only thing I have done to the directory is chgrp to my web group 'www', chmod it to 2775, and chown it to root.www. I'm not quite sure why Apache is complaining. The other directories I have set up with the <VirtuaHost> config don't complain (granted I haven't chgrp, chmod, or chown'ed them yet).
Look in /var/log/messages to see if there are any selinux errors relating to that directory when you try to access it.
Paul.