I am new to wordpress, the first time it worked fine, but the day after I had installed wp my server was moved and the nightmare began.
1. I couldn't upload images: I got a message saying that the directory home/site/blog/wp-content/2006/03 was not writable.
solution: I manually created 2006/03
2. Now I can upload images but get no automatic thumbnails with them as before.
I've installed 2 brand new blog in different directories of my web site, with their own mysql database, one using cpanel fantastico. I run into the same first problem.
I finally installed a clean(brand new) wp in one of my friends web sites, different host, and I still run into the same thing.