I have recently been trying to find a solution to this issue, as i have come across this on my own server and i'm convinced that it's a groups problem with in the WP code.
Many users seem to be experiencing the "Unable to write directory, is the parent directory writeable" issue, and then upon creating the new directory manually on their servers get the old faithful "unable to move content to new directory" error.
I have been advised by my webhost (after monitoring the server transcript) that this is an issue with the group that the WP code is using to write to the server it is installed on.
Does anyone else have this issue currently or experienced it in the past? Could this a possible bug in the WP code ?
There are enough people on here that have experienced this issue - and the CHMOD 777 get around is not a good one for security reasons.
Surely this must have been noticed by the WP developers ?
Anyone else care at all? all feed back is welcome, as this causes a reoccuring upload error, that I am unable to find a solution for.