I was having the common problem of being unable to create an upload directory when trying to upload photos. I tried changing the permissions using an FTP Client but kept receiving a command error.
Since my site is hosted by GoDaddy I needed to access my directories and files through their site. From the Hosting Control Center I went to the “File Manager” which is under the “Content” tab. From there I simply changed the wp-content permissions to read and write. Voila.
If you’re having problems you might want to try a similar solution.