diff --git a/pylons_app/controllers/admin/permissions.py b/pylons_app/controllers/admin/permissions.py
--- a/pylons_app/controllers/admin/permissions.py
+++ b/pylons_app/controllers/admin/permissions.py
@@ -2,7 +2,7 @@
 # encoding: utf-8
 # permissions controller for pylons
 # Copyright (C) 2009-2010 Marcin Kuzminski <marcin@python-works.com>
- 
+#
 # This program is free software; you can redistribute it and/or
 # modify it under the terms of the GNU General Public License
 # as published by the Free Software Foundation; version 2
@@ -22,6 +22,7 @@ Created on April 27, 2010
 permissions controller for pylons
 @author: marcink
 """
+
 from formencode import htmlfill
 from pylons import request, session, tmpl_context as c, url
 from pylons.controllers.util import abort, redirect
@@ -30,10 +31,12 @@ from pylons_app.lib import helpers as h
 from pylons_app.lib.auth import LoginRequired, HasPermissionAllDecorator
 from pylons_app.lib.base import BaseController, render
 from pylons_app.model.db import User, UserLog
-from pylons_app.model.forms import UserForm
+from pylons_app.model.forms import UserForm, DefaultPermissionsForm
+from pylons_app.model.permission_model import PermissionModel
 from pylons_app.model.user_model import UserModel
 import formencode
 import logging
+import traceback
 
 log = logging.getLogger(__name__)
 
@@ -44,16 +47,30 @@ class PermissionsController(BaseControll
     #     map.resource('permission', 'permissions')
     
     @LoginRequired()
-    #@HasPermissionAllDecorator('hg.admin')
+    @HasPermissionAllDecorator('hg.admin')
     def __before__(self):
         c.admin_user = session.get('admin_user')
         c.admin_username = session.get('admin_username')
         super(PermissionsController, self).__before__()
         
+        self.perms_choices = [('repository.none', _('None'),),
+                              ('repository.read', _('Read'),),
+                              ('repository.write', _('Write'),),
+                              ('repository.admin', _('Admin'),)]
+        self.register_choices = [
+            ('hg.register.none', 'disabled'),
+            ('hg.register.manual_activate',
+                            _('allowed with manual account activation')),
+            ('hg.register.auto_activate',
+                            _('allowed with automatic account activation')), ]
+        
+        self.create_choices = [('hg.create.none', _('Disabled')),
+                               ('hg.create.repository', _('Enabled'))]     
+
+        
     def index(self, format='html'):
         """GET /permissions: All items in the collection"""
         # url('permissions')
-        return render('admin/permissions/permissions.html')
 
     def create(self):
         """POST /permissions: Create a new item"""
@@ -71,6 +88,38 @@ class PermissionsController(BaseControll
         #    h.form(url('permission', id=ID),
         #           method='put')
         # url('permission', id=ID)
+                
+        permission_model = PermissionModel()
+        
+        _form = DefaultPermissionsForm([x[0] for x in self.perms_choices],
+                                       [x[0] for x in self.register_choices],
+                                       [x[0] for x in self.create_choices])()
+        
+        try:
+            form_result = _form.to_python(dict(request.POST))
+            permission_model.update(form_result)
+            h.flash(_('Default permissions updated succesfully'),
+                    category='success')
+                           
+        except formencode.Invalid as errors:
+            c.perms_choices = self.perms_choices
+            c.register_choices = self.register_choices
+            c.create_choices = self.create_choices
+                    
+            return htmlfill.render(
+                render('admin/permissions/permissions.html'),
+                defaults=errors.value,
+                errors=errors.error_dict or {},
+                prefix_error=False,
+                encoding="UTF-8") 
+        except Exception:
+            log.error(traceback.format_exc())
+            h.flash(_('error occured during update of permissions'),
+                    category='error')
+            
+        return redirect(url('edit_permission', id=id))
+            
+
 
     def delete(self, id):
         """DELETE /permissions/id: Delete an existing item"""
@@ -87,4 +136,27 @@ class PermissionsController(BaseControll
 
     def edit(self, id, format='html'):
         """GET /permissions/id/edit: Form to edit an existing item"""
-        # url('edit_permission', id=ID)
+        #url('edit_permission', id=ID)
+        c.perms_choices = self.perms_choices
+        c.register_choices = self.register_choices
+        c.create_choices = self.create_choices
+        
+        if id == 'default':
+            defaults = {'_method':'put'}
+            for p in UserModel().get_default().user_perms:
+                if p.permission.permission_name.startswith('repository.'):
+                    defaults['default_perm'] = p.permission.permission_name 
+                
+                if p.permission.permission_name.startswith('hg.register.'):
+                    defaults['default_register'] = p.permission.permission_name
+                    
+                if p.permission.permission_name.startswith('hg.create.'):
+                    defaults['default_create'] = p.permission.permission_name
+                             
+            return htmlfill.render(
+                        render('admin/permissions/permissions.html'),
+                        defaults=defaults,
+                        encoding="UTF-8",
+                        force_defaults=True,)        
+        else:
+            return redirect(url('admin_home'))