Please help setting permissions on a Public folder

I've just migrated from a G4 running 10.4.x to a Mac Pro running 10.5.1, and now when I create files/folders on a Public folder located on a Xserver, I can't set permissions to allow everyone to Read & Write.
Here's what's happening. Let's say I create a new folder in the Public folder and select Get Info to change the permission to allow everyone to Read & Write. The folder starts with the permissions as g42 (my account) "Read & Write", admin "Read only", everyone "Read only". If I click to change the Privileges of "everyone" to Read & Write, all of a sudden g42's Privileges change to "No Access", admin disappears and everyone (which I had selected as Read & Write) changes to "No Access". And the folder icon now has a minus symbol on the lower right corner.
With that said, lets say I try and correct this by clicking the Privileges of g42 to "Read & Write". Nothing happens. I then try and correct the Privileges of everyone to "Read & Write". After doing this the list of permissions is osxserver "No Access", (unknown) "Read & Write", everyone "Read & Write". And the folder still has a minus symbol on the lower right corner.
I'm sorry if this is confusing but it's just as confusing to me and I can't figure out what I'm doing wrong.
I Can set all the correct permissions if I do it via the Xserver. But I don't want to have to do this everytime I create a file/folder. And no one else connected to the network, running 10.4.x, has this problem which makes me think its a Leopard problem.
Any suggestions? Need me to clarify anything?
Thanks.

Hey Aaron...
I just ran thru this with my nephew at college who wanted to share .mp3 files with his roomies, and yes, I'm afraid it's all about permissions.
In a way, Apple has made this a bit harder than it needs to be.
1. You could create a new user for your computer, say User1, and let all your co-workers log in as that user, and they would have access to the all the docs in User1's home folder, including the ability to create, edit, move, and delete files. The problem here is that you'll be logged in as "you", and won't have the same priviledges, and no amount of manual changing of permissions will make this easier.
2. If you have a spare HD(they are pretty cheap), you can add that to your computer, and set the the permissions to "Ignore". Your co-workers can log in to your computer as Guest, and have access to all the docs on that drive, and you will as well, since docs on that drive respond to permissions issues.
3. The last option would be if you have an older, spare Mac to set up as a file server. Create a user for it, and you and your co-workers can log in as that user (all at the same time) and see, edit, and delete docs on the computer.
BUT, as far as I know, I have tried numerous times to do what you want to do, and can't get it to work. Unless you don't have any "secrets" on your computer, you could give your co-workers your username and password, they log into your computer and have access to all the docs in your home folder.... but ALL the docs... anything and everything in your home folder will be available for perused by anyone logged in with your username. LIkewise, establishing a 2nd user on your computer only goes most of the way to a solution, since you can't (easily) be logged in as both users and create, open, edit, save and delete docs.
I suppose there may be a script out there that will automatically change permissions on the fly, but I'm unaware of any.
Hope this helps.

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