Updating to Firefox 14.0.1 might have fixed it...or was it the reboot? I had tried setting permissions multiple times in Safari, disabling AFP, reboot, no luck, get the required field permission and then check boxes blank and disabled...cannot check/uncheck. I then tried same thing in Firefox, no luck. I rebooted FreeNAS (8.2 Release) and while it was rebooted Firefox asked me to install update 14.0.1, so I did.
As soon as Firefox restarted I went back to FreeNAS (which also rebooted during this process), and viola! It works.
So, is this a browser issue and the latest FF 14.0.1 fixes the problem or was this just coincidence and the FreeNAS reboot did the trick? I had rebooted FreeNas before and it didn't work so I think this is a browser issue...I could be wrong though.