It happened to me before. It could be the same thing happening to you.
Check your under Setting > Miscellaneous if you have correct path.
You might be upgrade your wordpress in another dir and rename it back, but the path in your setting did not change.
if the website is /blog what would the correct path be?
I added the /blog and the error is
Unable to create directory /home/virtual/site7/fst/var/www/html/blog/blog/wp-content/uploads/2009/01. Is its parent directory writable by the server?
ok …. apparently if you use OLM as a host server and you have this type of permissions issue just call OLM and they will reset the permissions for you, i asked if I could do it from the admin panel, they said no. but all is well now. cool.
