I have created a directory and chown to have permissions master:webmaster and chmod the folder to 775 hence group writeable. So why is it i bert as a member of webmaster cant mv the directory or create a file inside the directory.
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To mv the directory you will need write permission on its parent.
But you ought to be able to create inside the directory; can you show us this failing? The output of
ls -la /the/directory
id -a
touch /the/directory/file
would be most interesting.

MadHatter
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Probably the permissions for the parent directory are too restrictive (no write permission for group)

bitwelder
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or in other words: on UNIX, directories have their own set of permissions. – DutchUncle Jan 12 '11 at 23:55