Comment 0 for bug 242618

This affects Ubuntu Hardy (8.04)
To replicate this bug, set umask in /etc/profile to something *less* restrictive than the default 022. I'm trying to use 002 in order to have users create group writeable files in an office collaboration environment. Log out and in again for the change to take effect. touch-ing and mkdir-ing from the command line should create files and directories with the correct permissions. Next, in Nautilus, try create a new empty file and a new folder. The empty file will have the correct permissions, whilst the directory will have permissions of 755.
Note that changing the umask to something *more* restrictive, e.g. 077 seems to work correctly.
There is a gnome bug filed at http://bugzilla.gnome.org/show_bug.cgi?id=535124 that seems to be the cause of this problem, along with a suggested solution.
I was unable to reproduce this on Feisty (7.04)