I believe that I have the permissions set correctly but I can't write to a directory. Here's my problem:

cborders@Kraken:/var/www$ ls -la
total 12
drwxrwxr-x  2 webz webz 4096 2011-12-30 14:58 ./
drwxr-xr-x 13 root root 4096 2011-12-30 14:58 ../
-rw-rw-r--  1 webz webz  177 2011-12-30 14:58 index.html

cborders@Kraken:/var/www$ id cborders
uid=1000(cborders) gid=1000(cborders) groups=1000(cborders),4(adm),20(dialout),24(cdrom),46(plugdev),109(sambashare),113(lpadmin),114(admin),1002(webz)

cborders@Kraken:/var/www$ mkdir test
mkdir: cannot create directory `test': Permission denied

The owner of the directory is a user called webz and the permissions allow the user and group rwx access to it. I am in the webz group but I still can't make any changes. What am I doing wrong here?