I've searched everywhere but couldnt find anything so perhaps its not an issue.
I know that the CHMOD values for the Includes and Albums folders should be set to 777 but what about all the other files and folders what should they be set to for maximum security or doesnt it matter?
all other files need to be read and executed by the visitors and the user the webserver runs under, so CHMOD to 555 if you want. Usually you don't have to, as this is generally already the case on most servers.
The people browsing your site don't need direct access to the includes and themes folders, so you could even remove the access rights for them (only the webserver needs access there), so if you're paranoid you could even remove access rights there partially.
GauGau
Thats great, thanks for that much appreciated.