Comment 13 for bug 530193

It was working fine after I upgraded my server from 9.10 to 10.04 at first, but after doing the updates a few days back I ran into this problem.

I still had my old transmission-daemon init.d script so I compared it to the one that is currently being used. I noticed that my old custom one had username=myusername and the new one has name=transmission-daemon and user=debian-transmission.
I tried setting name=myusername, but that broke it. The page wouldn't load. When I put the old script instead of the new one I still had the permission problem.

As a temporary workaround I changed the owner of the download folder to debian-transmission using sudo chmod -R debian-transmission:debian-transmission /home/shared/downloadfolder/