General :: FTP User Access On Ubuntu

I am trying to set access to my ftp folder. As of now I have set the group ID bit on my directory:

drwxrwsr-- 32 root ftp-users 4096 2010-07-04 13:53 ftpserver

Which sets ownership to all files created in that folder and I assume the subfolders to my group "ftp-users". However the file permissions when created are:

-rwx------ 1 test ftp-users 0 2010-07-04 13:58 TestFile1.txt
-rwx------ 1 test ftp-users 0 2010-07-04 13:58 TestFile2.txt

I want the ftp-user group to have full access to these files.