| Couldn't you chown and chgrp the directory to the user and group your web server runs as (usually 'nobody')? I would think then it would work fine with permissions of 775. Then it's not world writable, but it's writable by the web server.
Or you could read/write files in a sub-directory under your script directory. That way you can make the script directory 755 and the files directory 666. There should be no reason why you have to have your script in the same directory you're writing files to.
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