gpg: failed to create temporary file

Hello all. I'm having issues again. Now I'm not able to create the temporary files for some reason.

gpg: WARNING: unsafe ownership on homedir `xxxxxx'
~gpg: failed to create temporary file `/xxxxxxx/.#lk4000d0d8.universe.1881': Permission denied
~gpg: keyblock resource `/xxxxxxx/xxxx': general error
~gpg: failed to create temporary file `/xxxxxxxxxx/.#lk4000d0d8.universe.1881': Permission denied
~gpg: keyblock resource `/xxxxx/xxxx': general error
~gpg: xxxx@xxxx.com: skipped: public key not found
~gpg: /xxxxxxxxxxx/test1.txt: encryption failed: public key not found~'            

I guess my first question is, what should the permissions be on all of the files? I'd thought it was supposed to be read for everyone write for only owner and root and no execute, but that seems to be causing issues.

Thanks for your responses.

EDIT: I've been playing around with permissions and just cannot get that message to go away. Dealing with a unix system.  I assume that the home directory itself should be read/write/execute for everyone. Then the secret key, trust db and the keyring, should be set to read everyone and write for owner only? Is this correct?

Edit2: What we are trying to do is have multiple users be able to share the same home directory to do encryption, but not decryption. From what I'm seeing there seems to be no way to set up user permissions for that directory so all uses can write to the trust db and read the imported public key for encryption without getting the "unsafe ownership" message. Can anyone confirm?

Greg