Weirdest. Problem. Ever?

Recently transferred site to a new host/server. Images are uploading without problems to posts, new Pages, and via the Media Library…

But uploading images to Pages returns the error:

“image.jpg” has failed to upload due to an error
The uploaded file could not be moved to /home/directory/public_html/blog/wp-content/uploads/2009/12."

I have checked the /upload/ directories, created those that did not exist, and changed permissions to 777, to no avail.

Just wondering what is set up wrong…