Allowing authenticated users to create files through Service/Restful (Drupal 7)

Question

I have setup a restful server running with the services module. I have also enabled to file resource. Using this setup I can successfully login from my client application, authenticate the session, upload a file using the file resource and then create a node with node resource. This all works fine and good as long as I am authenticated with an adminstrator but if I ever try and use a standard authenticated user I get this error back in response from the file resource:

Unauthorized: Access denied for user authuser

I looked all throughout the user permissions but I did not see any permission to allow authenticated users to create files. How would I do this?