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Installing XF on subdomain

#1
I have installed XF on my root domain with east but wanted to create a test environment test.mysite.com and for some reason when I upload the files into that test directory/folder I am getting:

test/data must be writable
test/internal_data must be writable

I logged onto my server as the admin/root and updated the permissions to 777 but am still getting the same error? Does anyone else have this issue? And more importantly can anyone help me resolve this?

Thanks.