PHP/MySQL/Linux fix

We have a community portal that we recently moved to a new host. The new host uses Linux and standard Cpanel... Everything seems to be working correctly. With the exception of the photos we upload to the site. The photos are being uploaded without a problem except it only displays the thumbnail and not the full size photos. This includes the photos on the users' profile and other photos that they upload. One thing we noticed is that the folders where this photos go, the root folder needed to be chmod to 777, but when we do that to the root folder it gives us the following error: ----------------------------- Internal Server Error The server encountered an internal error or misconfiguration and was unable to complete your request. Please contact the server administrator, and inform them of the time the error occurred, and anything you might have done that may have caused the error. More information about this error may be available in the server error log. Additionally, a 404 Not Found error was encountered while trying to use an ErrorDocument to handle the request. Apache/1.3.34 Server at [login to view URL] Port 80 ----------------------------- When we keep the folder chmod to 755, it works ok except for the no photo. We think that the problem is related to this problem. All sub folders, including the actual sub folders where the photo goes can be chmod to 777 with no problem. i.e. /public_html/main folder - can only have chmod 755 or else it will get the above error. /public_html/main folder/sub folder - can be chmod to 777 without a problem /public_html/main folder/sub folder/photo folder - can be chmod to 777 without a problem. I hope that I have explained this clearly, if you need additional question before bidding please do not hesitate to ask. This seems to be a simple problem, it's just that we don't have a capability to fix it in short notice. Price is definitely a factor, as it is only troubleshooting and everything else seems to be working correctly, so no need to do anything on the database, maybe just a quick fix on the code or inform the host to do something on the server. I will definitely consider a lower than the minimun GAF bid here. thanks