The code says everything:
max@serv$ chmod 777 .
Okay, it doesn't say everything.
In UNIX and Linux, the ability to remove a file is not determined by the access bits of that file. It is determined by the access bits of the directory which contains the file.
Think of it this way -- deleting a file doesn't modify that file. You aren't writing to the file, so why should "w" on the file matter? Deleting a file requires editing the directory that points to the file, so you need "w" on the that directory.
