WordPress Error: Could not create directory. /public_html

Using version 3.03 after installing new version on different folder, previous folder in version 3.01 gives me this error… Could not create directory. /public_html

so now in the NEW folder that im using 3.03 i assume everything is fine, but guess what, I get this error… Could not create directory. /public_html when trying to add a plugin

never had any problems with wordpress

ive tried the delete upgrade folder and chmod 777

wtf wordpress…this error is crawling with no fixes…can someone step up to the plate and resolve it…and sorry its not some crazy shit thats wrong with my server