Newly Created Sub-Directories Don't Have Parent Directory Permissions

Question

Hoping someone may be able to shed some light on this.
Background:
Running 10.4.11 as a file server on a PPC G5 in a small creative office. We have a handful of users accessing via AFP. No other services are running.
I'm using Workgroup Manager as admin tool.
Top level directory has permissions set to Read & Write for Owner, Group & Everyone.
Issue:
When an authenticated user creates a new directory on the server, the new directory does not honor the parent directory permissions for all three user tiers.
Rather, in getting info, the owner is momentarily set to the user who created the directory with read & write, then switches to (unknown) with r&w. The group is momentarily correct and then switches to (unknown) despite the creating user being part of a specific group, and has Read only permissions.
Everyone has Read only permissions.
If a user attempts to fix permissions on a directory they just created, they are unable to do so.
So, throughout the course of the day, I am bombarded with "I don't have permissions...", wherein, i use remote access to hit Workgroup Manager and do a global propagation down of the parent directories permissions to allow access. Until someone else makes a directory
This can't possibly be right. Newly created directories should be set to the parent directory permissions, if i'm not mistaken.
Anyone? Any insight?
Michael B.

Answer 1

oh yes.. you are right... its accessible in
http:://rishtey.local/default_1.html
successfully... thanks for that... first of all
now issue is: when i access http://rishtey.local/test.php which contains just a tag to display php info only...
instead of rendering this php file, it just save the file in the download folder.
what could be the issue with it?