ooops.
Maybe a course in Unix basics would've helped...
You've got to remember that (with the exception of the setuid option in apache that isn't enabled by default), apache will run scripts with the permissions of the user it is running at.
If it's installed correctly, it will be running as an unprivilaged user (perhaps the nobody user, or a specific user for the server).
So you have to setup directory permissions as appropriate.
To have the ability to create new files, you must have write permission of the directory.
This is because you are changing the directory, effectively, whereas writing to, or over a file already in existance, requires just write permission on that file.
