Mordenkainen/RedstoneChips — comment on commit d3f93ec9126956ed7a4247a7af125d0f66681f81
File:  line 0
By Mordenkainen:

I have not had time to look at this, and probably won't for a week or two. Once Bukkit updates to support1.0 I will probably put some time into it.

As a quick fix, you could try adding explicit defaults of "false" for the deny permissions, but my understanding is any permission with no default defined should default to "false".

Were you an OP when you tried this? Perhaps the permission system is defaulting it to "true" because you are an OP?