More evidence
 

I have been having similar problems with Contribute from Macromedia. I cannot establish a verified connection setup that would allow me to use it with a web site that runs on OS X, not server but plain OS X. I have done extensive testing and spent a lot of time with Macromedia support and some with Apple.

In my testing, I discovered that if I create a new file via ftp (even from the same system), the rights for "others" is always the same - no rights, not even read regardless of the folder's inheritable privileges. It seems to hold true for any folder not just /Library/WebServer/Documents/. This is the root of my problem as Contribute creates a test file via ftp and then attempts to access it via anonymous http protocol. Since the file is created with no rights for "others", the test fails.

I have discovered that if a file already exists with read rights for others and is replaced using ftp, it will retain those rights. This does not help with my Contribute problem as Contribute, for some bizarre reason, generates a random file name which I cannot predict. But if Dreamweaver always uses the same test file name, you could create the file in advance, adjust the privileges, and then run the site setup. When Dreamweaver's test is run and the file is replaced, it should be readable. It should work.

Of course you will still have to remember to "fix" the privileges on all new files you create with Dreamweaver but you may at least be able to do something with it.

Apple support tells me that this is controllable under OS X server but not in plain OS X. They also indicated that they do not know if it would be changed in the future.

Please remember not to assume that the solution to people's problems are always simple things that they simply have not thought of or tried. Before offering a solution, test it yourself first, if you can. Then if your theory works, suggest it. This can save a lot of agravating and unnecessary hoop-jumping.

Now, if you have a solution to this problem, I would be very, very interested as well.

Thanks for all the interesting discussion.