The latest version released Oct. 2005 does not do this. The older version worked well. I opened my SSH client to change permissions. CoreFTP wouldn't do it. Maybe this is related...Now I cannot upload and get a 550 permission denied!
You are correct. I uploaded a tar file to my server, but did not realize the chown was not set correctly. So I changed the chown to the user (me) and all is well.
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I hope this helps others.