My blog is installed in a folder named blog on the server.
Use it as a subdomain.
There is a images folder in the blog folder.
It's CHMODed 777.
Specified /images as the fileupload_realpath
Still, I get this message on the upload tab:
It doesn't look like you can use the file upload feature at this time because the directory you have specified (/images) doesn't appear to be writable by WordPress. Check the permissions on the directory and for typos.