chmod problem with mkdir()

Hello List,

i have a problem with simple script that uses mkdir();

mkdir("/path/path/folder", 0777);

The highest chmod i get in created folder is 755, the 777 is ignored, but 
less chmod like 705 accepted.
What could be wrong? Of course i can use chmod() after mkdir() but i think 
function should do what it is promising...
script is running with php-cli 5.2.6
Thank you
Andre