Is 777 permission, really a security RISK ???

[Qayyom]

my HOST upgrade server with PHP V5 or so,

after this, I am facing some directory permission (read only) e.g related messages

like

-I can't use "edit files" option to editing multiple pictures in any album
-I can't upload files with "XP web publishing wizard"

my HOST says that you've to change permissions of your main folders from 755 to 777, it is not a security risk.........TRUE?

If it's not a SECURITY RISK, then which directories/folders permission I've to change as 777.??

[Joachim Müller]

Simplemachines.org: Why chmod 777 is NOT a security risk