Every file on the system under / (root) is given rwxrwxrwx permissions using the command chmod -R 777 /. This is the same as giving read/write/execute capabilities to ALL users.
Other directories under root, such as home, media, etc., will also be impacted. The owner permissions in the sample -rw-r—r— are rw-, meaning that the owner can read and write to the file but not run it as a program. The owner permissions in the example drwxr-xr-x are rwx, meaning the owner has access to view, change, and enter the directory. When a directory has a 777 permission, everyone has access to read, write, and execute (execute on a directory means that you can do an ls of the directory).
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