Media upload problem with WP 3.7.1

Just updated WP to 3.7.1 on my blog and as soon as I try to upload a plugin or an image or a gallery of images I get the following error:

“imagename.jpg” has failed to upload due to an error
Unable to create directory uploads/2013/11. Is its parent directory writable by the server?

I have checked the permissions and the permissions on the entire uploads is read/write & Execute but still I get the error. Is anyone else getting this problem?

I also created a new, clean installation of wordpress 3.7.1 and got exactly the same error. My guess is 3.7.1 is broke so my next question is how long do these things take to get fixed?