To make a set of files work with groups:
chmod -R g+rw somedir
find somedir -type d -exec chmod g+s {} \;
Then make sure each user has the umask 002. It is
common for it to be either 002 or 022. Typically
this is set in /etc/profile, /etc/bashrc, or the
users' .profile, .bash_profile or .bashrc file.