I've read every post I can find on this topic and I've have found no solution
I've changed the owner of all the folders and files to to be owned by apache server. In this case "_www" is the process that owns Apache in my my LAMP set up.
And I've change permissions on the files to 775 and 777 for both wp-content and uploads with still no luck. Each time I get the same message
“image-name.jpg” has failed to upload due to an error
Unable to create directory wp-content/uploads/2013/04. Is its parent directory writable by the server?
This is driving me crazy. Any help would be appreciated it.
One odd thing I also noticed was that when I changed the permissions of the uploads directory to 777 it broke all my images on the site. This seems strange as well.