WordPressMu Media upload error

Have finished installing WPMU 2.7.1
All is good untill try upload any kind of media.

Can select the media then upload and then perform the ‘crunching’
Then reports the following error
‘Missing a temporary folder.’

system set up upon is as follows
•Operating System : FreeBSD
•Server : Apache/1.3.41 (Unix) FrontPage/5.0.2.2635 mod_ssl/2.8.31 OpenSSL/0.9.7m

Also running BBPress plugin with WPMU…

The server temp folder was set777 with no luck.

Any help please…