Hi ! I have lastest version (1.9.10) and the error "The server setting Safe-Mode is on !" is still there.
I notice from changelog it was bug-fixed in:
= V1.8.0 – 12.06.2011 =
* Bugfix : Create gallery failed when safe-mode on
All permission in the website root are correct, 770 and even 777 gives same problem.