Just read this:
"The only folders we create and set permissions on are the imagesupload, webassist, and Connections folders. We specifically set them to 777 in order to allow the editor and file uploads to work properly when editing."
The "imagesupload" is the folder that's causing me grief.
Talked to NS and they set everything to 664 on upload and apparently can't or won't make a change.
So I'm guessing that that's the source of the problem.
He assured me that a script - like the one you devised earlier - would work.