I've just setup a fresh install of wordpress 2.7
At first i installed it in a subcategory just to make sure everything was alright before I made it public.
Then I tried to change the subcategory (in settings) to make the blog display in root (i.e http://www.example.com instead of http://www.example.com/example)
This however did not work, so I deleted all the wordpress files and uploaded new fresh ones. However the database was left intact with some posts.
Now, when I try to upload pictures it does not work. The directory http://www.example.com/wp-content/uploads is not even created on the server and the pictures is all broken. No preview no nothing in the media library.
It makes me think this has something do the with the install in the subdirectory earlier? However, i did not try to upload pictures on my first install so I dont know if that worked.
I have tried in both firefox and safari with no luck.
Let me know if I can give you any more helpful information.
Thank you for your time.