As thephpdeveloper mentioned, setting chmod once is enough. All subsequent writes into that directory will not change the directory permissions unless you explicitly chmod it to another permissions somewhere else.
The recommended permissions for directories on a *nix server is 755.
Setting permissions to 777 is not recommended. As mentioned by wic, it gives full permissions to everyone that have access to your server. Which makes it vulnerable if you are on shared hosting or sharing the server with other users.
Also to note is how PHP is run on your server. In fact, if you are running PHP as cgi, example suphp, permissions of 777 for directories are not allowed. Having 777 permissions on the directories your scripts reside in will not run and will instead cause a "500 internal server error" when attempting to execute them.