RC2 Can't install mods says permissions aren't right

[wing]

I starting installing some mods, something went wrong... got a blank screen.

So I tried again but now all I get is:
An Error Has Occurred!
You cannot download or install new packages because the Packages directory or one of the files in it are not writable!

But everything is 777 .......

[wing]

Updated, I deleted the packages directory.  I remade it with 777

Then I downloaded a new package

and it put it in the directory.... when I attempt to install it.... I get that same darn error!

[kegobeer]

Your particular server setup may require 755, or it may not let you install packages that way (I ran into that issue on a client's server.)  Ask your host for assistance.

[wing]

It all worked before, and worked in my previous install.  I'm going to turf it and start over.

Wow turfing it didn't even work....... I might have to start from scratch again 

[wing]

Started over .......... all is well.