WordPress version: 3.4.1
WordPress SEO version: 1.2.5
I did this: tried to update 1.2.6 WordPress SEO by Yoast seo.
I expected the plugin to do this: to update the plugin without a problem.
Instead it did this: received the following message: Unable to locate WordPress Content directory (wp-content).
This is strange because this is the path I see in my FTP:
So it has to be okay.