Question: why do you have upLoads (noice the capital “L” please) instead of uploads (all lowercase letters) ?
Go to Settings -> Media and see what does it say there. Does the upload path field have anything in it, or upLoads instead of uploads?
Amend it and try to add images again.
Is it doesn’t work, check that the upload directory exists (be may upLoads or uploads) and it’s writable (if you can’t or don’t know how to check that, talk to your hosting provider about it).
Once done, try to upload images again.
That was the default setting under Settings Media. I’ve changed it, folder is writable – still getting the error. Folder is up on server.
Unable to create directory /var/www/vhosts/appliedinteractive.com/httpdocs/blog/wp-content/uploads//2012/09. Is its parent directory writable by the server?
If I remove check from “Organize my uploads into month- and year-based folders”
Get new error: The uploaded file could not be moved to /var/www/vhosts/appliedinteractive.com/httpdocs/blog/wp-content/uploads/.
Both wp-content and uploads are writable by Owner.
Ask your hosts to check if you have a folder ownership issue.
Thanks. Apparently it is a server issue that we have to resolve.