Permissions on directories for file uploads?

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http://serverfault.com – What is the correct way to set up directories to allow user uploads on Linux? My websites upload dir is 755, but Linux naturally doesn't let files be written to this directory except by the user. So should I change the directory to 777 or do some kind of group manipulation? Bare in mind, I don't want to open myself up to any security risks. (HowTos)