my old server defaulted to one where the script COULD access write to the folder
This is a very insecure default setup. Publicly accessible directories on a web server should always be umasked to 022, which is what you're seeing on the new server (mode 777 minus 022 = 755, basically).
The people who are going to be uploading files/folders to the FTP server arent going to know how to chmod and I dont expect them to.
People uploading to the server should be signed in with their accounts into folders in which they have write permissions.
Is there a way of changing the default permissions of the uploaded folder?
Or another work around
Yes, change the umask of the folder. However, it's set like that for a reason. I'd suggest a better solution would be to take a better look at what you're doing. If you require anonymous users to upload files, perhaps you should database those files instead of placing them on the filesystem
is there a way of allowing the user 'Apache' (which php wrongly classes itself as when using FTP commands, even when logged in as the right user)
If PHP is running under the web server, it's running as whatever user apache runs as (usually "apache"). For a user to run the script under their own credentials, you'd either need to start apache running under that user (in httpd.conf) or they'd have to
actually log into the server and run the script from the shell. In either case, they'd have to have an actual account on the server, not just be a member of your site.
vsftpd will allow you to set up a (quite secure) FTP server that can jail your users into their home accounts - but again, these users have to have actual system accounts, not just have some entry in a MySQL database table somewhere.