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What could be going on here?

dylan/var$ ls -ld www
drwxrwxr-x 2 root webdev 4096 2011-03-19 05:13 www
dylan/var$ grep webdev /etc/group
webdev:x:1001:dylan
dylan/var$ touch www/test
touch: cannot touch `www/test': Permission denied
dylan/var$ groups
dylan adm dialout cdrom plugdev lpadmin admin sambashare
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Group membership is determined on login. Log out, and then log back in.

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