win2k3 image upload permission problem

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When I am in the admin tool and try to add an image to a catagory or a product, the image is uploaded correctly to the images/ folder and has the correct path in the record in the database. The problem is the file is created without the proper internet guest account permissions and therefore returns a 403 error due to ACL when viewed on the front end. The folder has the proper permissions with force child objects to inherit checked. Whenever I create a file in the folder using the windows environment, it is created with the inherited permissions, but when the files are uploaded through the admin tool, everytime they are created with Administrators, Power Users, and System user permissions, not the persmissions of the folder the file is uploaded to.

 

Is the something in the php.ini file to accomodate this or is it something to do with iis, or the osc files?

 

Please, any suggestions?