Ditto, I’d say.
It worked fine yesterday, but currently I am only getting the Smush.it error: Failed to create a temp dir error message.
Must be a new API change by Yahoo… *grumble*
I would like to point out that this issue is still unresolved.
Downgrading to 2.1 fixed my problem and I will in the future be wary of upgrading until I get a clue on why my blog behaved as it has been described above.
I have the same problem as well.
Took it one step further though. With a clean install everything works. But as soon as I try to login into my upgraded blog I get a premission denied message.
I have worked through this thread http://ww.wp.xz.cn/support/topic/53261/page/2?replies=94 without any positive results.
Appreciate any help or ideas.