Ok, I am posting this in this theme's support because I have never come across this error before. I have installed several wordpress installs on this host, and used a one of your other themes and have never had this problem. So I am wondering if it may be related to the theme.
Running Wordpress 3.01 with no additional plug-ins installed yet.
I am getting this error every time I try to upload an image:
“slider_1.jpg” has failed to upload due to an error
The uploaded file could not be moved to /var/www/vhosts/sideeffectsdesign.com/httpdocs/wordpress/wp-content/uploads.
The file cruches ok, but then this error comes up.