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I think there is no other solution, you need to enable FTP layer if you want e.g. upload your images into your folders, but your GD needs to have rights to save new thumbnails in your folders, if it doesn't have the rights, it cannot write the thumbnails on your server
I installed phoca galery to on my website and i encounter the same problems.
So i contacted the ISP. His answer was that on behalve of safety issues, uploaded images are standard given the 660 rights. This means that visitors can't view the pictures. There sugestion was to change the rights with filezilla.
My ISP wont change this setting.
My suggestion would be that the Phoca Gallery software automaticaly changes the rights after uploading in 644.
Then the images wil show up in de Phoca Gallery and on the website. It will solve a lot of problem for many users i guess.
I already tried this solution but it didn't solve the problem. The ISP policy is that every uploded images gets the 660 right due to security reasons. Using the FTP layer wont salve this either because this safety setting. The ISP adviced me to change the rights in 644 of the images trough the PHP code itself after uploading. Thats the reason for my request.
I think there is no other solution, you need to enable FTP layer if you want e.g. upload your images into your folders, but your GD needs to have rights to save new thumbnails in your folders, if it doesn't have the rights, it cannot write the thumbnails on your server 
