1and1 VPS Plugin Installs through Dashboard

I have a wordpress blog (several) that are on a 1and1 VPS. Everything seems to work swimmingly except one feature.

When I attempt to install a plugin using the dashboard it seems to install correctly, the zip file get’s extracted to the plugins directory it all seems good to go, but if I hit Activate Plugin it comes with a Valid Header Not Found error. If I just install and return to plugin installer without trying to activate and then go back to the Plugins area and look for the plugin it is not listed, but if I FTP into the server the files are all there, in the proper structure. I can then download the Plugin delete it from the server and upload the files I just downloaded and it works just fine. It’s very odd, it’s like for some reason the files aren’t getting recognized by WordPress once they are downloaded and extracted.