On Tue, Oct 10, 2006 at 11:43:27AM -0500, Mark Holden wrote:
> The issue is that when I SFTP a file onto the server, the default umask
> used seems to be 077, given that files are created with mode 600 and
> directories with mode 700.


This doesn't match my experience.

pegasus:~$ touch foo
pegasus:~$ ls -l foo
-rw-r--r-- 1 greg greg 0 Oct 11 08:37 foo

pegasus:~$ sftp greg@griffon
Connecting to griffon...
Enter passphrase for key '/home/greg/.ssh/id_rsa':
sftp> cd /tmp
sftp> put foo
Uploading foo to /tmp/foo
foo 100% 0 0.0KB/s 00:00
sftp> ls -l foo
-rw-r--r-- 0 1000 1000 0 Oct 11 08:37 foo

Perhaps your sshd daemon is being started with a umask of 077, which is
then passed down to the sftp-server child. Examine your start scripts,
and see whether putting "umask 022" (or whatever you wanted) in the
sshd start script helps.