On Wed, 01 Dec 2010, Gary Roush wrote:
Uploading files is finally fixed. After escalating help with ReadyHosting to level 3, I finally found someone who could change the image directory permissions to "full" (their term). That solved the problem, but interestingly when I look at the directory permissions using FileZilla, it still shows 755. No idea why it does not show 777, but since file upload now works I am done with this.
I believe what's crucial here is that the web server software be able to write to the directory. You're right that changing the directory permissions to 755 wouldn't fix this. Changing the ownership of the directory to the account under which your web server software runs, however, might.