Need help - File upload permissions

I’m trying to do a simple file (image) upload and I’m running into
trouble with permission to upload the file

System: XP
User staus: local admin
Rails env: Instant rails w/Mongrel (vanilla setup)
local site www.sgm.com (host file setup
local port 3010
apache modifed to proxy (per instant rails setup)

I’ve added a directory called “media” under the public directory in my
application

in my npicture.rb

File.open(“#{RAILS_ROOT}/public/media/#{@filename}”, “wb”) do |f|
f.write(@temp_file.read)
end

When I run this I get
Permission denied - C:/InstantRails/rails_apps/SGM/public/media/

When I look at file/folder properties the attributes are set to
read-only and the system does not respect a change to that check box and
I’ve set all users on the system to have full controll of the
InstantRails directory and all subdirectories - still shows read only)

Could there be some tweaking necessary to the apache config (perhaps a
Directory element in the VirtualHost element) for the site which is more
then just the vanilla?

I usually develop on OSX but I’m stuck and a win box for the next couple
of weeks. Part of me wants to just say “stupid windows” and just wait
until I can get back to my Mac…