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Howdy,
It sounds like the uid/gid setup in your Apache config isn't matching the owner of the files in your public_html directory.
The key would be to make sure the permissions on the files match what shows up in your Apache config.
Alternatively, you could go into Server -> Website Options, and set "Run CGI scripts as domain owner?" to "No" in order to disable suexec for that domain.
At that point though, you'd need to make certain that the Apache user has rights to read all the files/dirs in public_html.
-Eric