Apache problems with Concrete5.7

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Hi,

I am new to Concrete5. Not new to system administration or other applications. I have a problem with Concrete5 file permissions (not back end editing, but file system files). Whenever I install a new theme, the .css file (and sometimes images) are inaccessible with the following error appearing in the apache2 error.log

AH00035: access to /application/files/cache/css/fruitful/iGotStyle.css denied because search permissions are missing on a component of the path

All file permissions seem fine for suPHP (755 and 644) and another 7 php applications run fine on the same server environment.

Thus can someone tell me what is it that concrete5 wants from me? How to I tell it to work with our server and where do I tell it what default file permissions to set so that the site does not break every time I upload something to it such as a new theme.

Thanks,

Victor