Ok, I just looked up how I fixed this on a client server last year; I modified the SuPHP config file (which in his case was in /opt/suphp/etc/suphp.conf, and commonly it can be found in /etc/suphp.conf, yours may vary) and I changed:
allow_file_group_writeable=false
allow_file_others_writeable=false
allow_directory_group_writeable=false
allow_directory_others_writeable=false
to
allow_file_group_writeable=true
allow_file_others_writeable=true
allow_directory_group_writeable=true
allow_directory_others_writeable=true