All I can tell you is that you can use the "hello.php" to peform all your test and identify the origin of the Symbolic Link forbidden.
As the "hello.php" works in standalone (don't require anything - joomla is not required), you can use it to test your hosting server configuration.
You can for example try using it in a specific folder that is not related to your current domain or sub-domain.
Personnally, I suggest you to first try setup your hosting server correctly before trying to use the Symbolic Link in JMS.
Once the hosting server will be OK, you could try to setup JMS to use the Symbolic Links.
Just test one parameter (here the hosting server configuration) at a time.
If I understand correctly, when you put chmod 777 the Symbolic Link is OK.
This mean that the files and/or folder has an ower / group that is compatible with the apache user.
You can also try to perform a chown (change owner) to give the appropriate owner of the file. When it will be own or at least in the same group of user, you should have the permission.
This kind of problem may be due to the fact that you transfert( ie. FTP) files and folders with a user that is not compatible with apache. This is the case for example if you use a root user that have more privilege than apache. In this case apaches will not be able to create or modify files/folders created by the root user.
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