I have been doing extensive research on this since days. But there is no clear solution to this.
I have a fresh installation of latest WordPress 3.3 and fresh database. When I try to add any media file it comes up with the error message:
Error saving media attachment.
This seems to have been a problem for years, but there is no clear solution.
Some claim its a privilege issue and chmod 777 would solve it.
On my IIS I made sure that the folder is not read-only and can be accessed. Without any luck. Unless there is anything specific I have to do and haven't figured out yet.
Other claim, its a path problem, which I can't confirm. I have been trying everything without success. Has anyone here ever come across this problem on IIS and was able to solve it?