Re: pepe, many responsible providers do not allow safe mode to be off. In fact, programs should be written for safe mode so that in shared environments there is less chance of data leakage.
I’m having the same problem as above, in version 2.0-15 of WordPress. I’ve determined that WordPress creates folders as the apache user, but then can’t take advantage of the chmod 777 because the owner is still apache. In order for the permissions to work, I must delete the folder and recreate it with the same permissions so that the owner is now my hosting account (this is a shared environment, so I don’t have access to apache)