After brushing up on my file permission skills, I have been able to remedy the problem. I am still not sure what the cause was. In any event here is what I did to resolve:
// reset all permissions on directories to default - probably unecessary
find . -type d -exec chmod 770 {} \;
// reset all permissions on files to default - probably unecessary
find . -type f -exec chmod 760 {} \;
// setGID
chmod -R g+s *
All is good now. I have one question however perhaps someone might answer. How is the setGID determined if I have more than one GID?
Thanks!