I stumbled across a problem, and then a solution, today, when deploying a Rails application to HostingRails. After I deployed, I started getting Application (500) Errors on all of my pages.
After talking with support, I found out that is was because the group write permission was being turned on on my dispatch.fcgi file. Looking further though, I realized that all of my deployed files had group write turned on! So, the question was, why?