Set default product values when adding new product in Magento 1.7

Question

I have created an Observer.php for the event catalog_product_new_action

Answer 1

....

//$product->save();

$stockItem = Mage::getModel('cataloginventory/stock_item');
$stockItem->assignProduct($product);
$stockItem->setData('is_in_stock', 1);
$stockItem->setData('stock_id', 1);
$stockItem->setData('store_id', 1);
$stockItem->setData('manage_stock', 0);
$stockItem->setData('use_config_manage_stock', 0);
$stockItem->setData('min_sale_qty', 0);
$stockItem->setData('use_config_min_sale_qty', 0);
$stockItem->setData('max_sale_qty', 1000);
$stockItem->setData('use_config_max_sale_qty', 0);

//$stockItem->save();

Read more at http://blog.magentoconnect.us/creating-magento-products-on-the-fly/