Have read the recent 3.3.1 and image related posts, not seeing an answer to this one.
Image is uploaded to directory:
But the image url returns a 404:
As you'd expect this is resulting in broken images in the media library and, well, everywhere really.
It's not theme related (tried switching to twenty eleven to verify)
It's not media settings related (reset them to default to verify)
I'm probably missing something obvious, but any help is much appreciated!