--- file.inc	2007-10-04 19:47:47.133681000 -0600
+++ file.inc	2007-10-04 19:49:59.567413000 -0600
@@ -100,9 +100,9 @@

   // Check if directory exists.
   if (!is_dir($directory)) {
-    if (($mode & FILE_CREATE_DIRECTORY) && @mkdir($directory)) {
+    // Chmod 0775 Necessary for non-webserver users.
+    if (($mode & FILE_CREATE_DIRECTORY) && @mkdir($directory, 0775, TRUE)) {
       drupal_set_message(t('The directory %directory has been created.', array('%directory' => $directory)));
-      @chmod($directory, 0775); // Necessary for non-webserver users.
     }
     else {
       if ($form_item) {