In my experience this is often associated with Chown issues, (change owner). You see apache and joomla are "XX" user, where as the apache server is treated as another.
It is a little concerning that you say that 777 did not work, this problem is usually associated with 6 Series issues where you allow group access. Try changing the owner of the user and then test if it works, if it does then from memory you can change something on the server end to permanently fix this problem for your specific server and all other servers.
I suggest that you should google this specific issue a bit as I doubt it is a specific issue with this template.
A little side note, technically you should never open directory 777, especially in a joomla environment if you plan to list to a search engine. This is because spiders will crawl the internet and search common directories people leave open as 777 (and they know them from the joomla syntax). They then install malware to your site, and you will be blacklisted at the next google scan, but unfortunately you will (try to) infect many of your visitors before this happens. I have done this once before i knew of the issue and then again once accidentally, and both times I was swiftly infected. Never 777 directories, it can also affect your siterank if it persists.
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EDIT*** Few other ideas.
Try php.ini
display_errors = On
Or even:
error_reporting = E_ALL & ~E_NOTICE
Find out more details on the problem.