I'm using edgy as well and had the same problem.
Rules existed. I was in fuse group and fuse was the group in /dev/fuse.

Still I got permission denied error.
 
Anyway, I had just installed ssftp and obligatory packages, so I decided to use 
the magical trick;
reboot. Now everything works perfectly.

-- 
fusermount requires fuse module kernel to be loaded, isn't done automagically
https://launchpad.net/bugs/1860

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