Yeah, I spent a good few days researching the permissions stuff. I am lucky I happened to have chosen a host that used SuPHP before I even knew what it was for
The only issue with system files of Joomla being CHMOD 777 is that, if there is a "hole" in any Joomla system files, it could be more vulnerable to an XSS attack or other form of code injection as it's an easy entry point for such activity. The fact that all this is open source makes it a haven for script kiddies to get-off on. But there are apparently quite a few sites that have a global 777, and they 'fake' their own security by making it look like as far-away-as-possible-as-Joomla as they can (including renaming the administrator folder for example, and removing Joomla branding from templates, and the HEAD generator=Joomla tags with sh404SEF).
I'd like to personally recommend the Joomla extension
GuardXT
. With the FTP Layer enabled in Global Config, it does a pretty good job of automagically adjusting your permissions - or alterantively, it can just check your site status and let you do it all manually with the status/logs as a guide.
Yeah, I think the template problems on this site are related to the Kunena template. I will disable my Adblock extension (*gasp*) and maybe take a crack at it with Firebug, thanks for the reminder.
EDIT: I just did some extra reading, and I think I learnt something - the FTP owner of nobody/nobody doesn't seem to be a security issue at all actually. But it may cause "too-restrictive" security in the event of trying to modify the installation. However, I imagine that with the FTP Layer enabled in Joomla, that is of no concern - as long as the account assigned to said FTP layer Joomla is using has max access rights (via cPanel or whatever), it can modify everything. Hope that makes sense.
EDIT2: Here's something interesting:
PHP scripts here run as the apache user ("nobody" in this case) not as your user account. This is because PHP is run in mod_php mode. This means that when you upload a file through HTTP (ie through a web form), or your web program creates a file on the server that file will be owned by the user called "nobody". This can create problems when you want to delete, rename, copy, move or edit the file later through FTP, SSH or SFTP because you are not the user "nobody" and thus probably don't have the correct permissions.
Since your webhost runs Apache and PHP as nobody, I really can't suggest anything and I am unsure how good or bad it could or could not be
Although I did find
another enlightening article
worth a read.