Yes, I have read the sticky on Media Uploader issues sticky.
My problem is that I select a file, and try uploading it, and it says everything worked. Then it lets me insert a title, etc, and lets me insert it into my post. But it never really saves to my server. It's just a dead url. But I know it actually uploads and processes it because it detects the height and width of it. The first time I tried uploading, I saw that it tried to save it to the wp-content/uploads folder, but it didn't exist. So I created 'uploads' with CHMOD 777, but that didn't solve anything. I've tried just using the browser (not flash) uploader, but that doesn't work either! What am I doing wrong?