OK! I had a similar problem wil All-In-One-SEO (sp) and it took a while for my Host and I to sort it out. The instruction that I (me) was given, to pass to my Host, was as follows:
1 "This error indicates that your host has enabled the PHP open_base_dir setting on your server. Your host needs to add your WordPress and/or All in One SEO Pack installation folder to the allowed paths for this setting (i.e., add the file path referenced in the error as 'not within the allowed path').
The open_base_dir setting is primarily used to prevent php scripts for
a particular user from accessing files in another user's account. So
usually, any files in your own account should be readable by your own
2/You're getting the error because one of the changes in this plugin is to have the SEO class in it's own file. Including that class isn't
allowed by your paranoid host. You're going to have this problem with a lot of plugins.
We got it sorted but I have not tried any 'automatic upgrades' since then. My Host left SEO Upgrade in the installed condition (he also found a syntax error in a folder name, which caused a problem for the Plugin to be able to 'Activate'. Specifically, a _ instead of a - in the file or folder name of all-in-one-SEO.php [for instance])
I'm happy with my Host but Plugin Programmers, I think, should be aware of this type shortcoming and rather than advise us to go to THEIR preferred Host, give practical advice and some notice of this particular bug. I looks from this thread that I am not the only one taken by surprise.