Can't have a directory chmodded 777 (cPanel)?

http://www.onlinexpasswords.com/ati/ Gives an internal server error, error log says directory is writable by others. It is a public directory, the user wants to write there using scripts.

Also, when I run Fix Insecure Permissions in WHM, it automatically changes the dir to 755 and it works. However, on the old server this user was able to keep it 777, I don't think cPanel ever changed it. Any ideas on how to make it work with 777?

 

 

 

 

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