AAAAAAAAAHHHHHHHHHHHHHHHHH!!!!!!!!!!!! I discovered the answer, and I’ll guarantee you that this would fix 99% of those cases out there that the CHMOD to 777 didn’t fix. You can’t use a relative path (ie: blog/wp-content), rather, you must use the absolute path (ie: /home/content/X/X/X/XXXXXXXX/html/blog/wp-content).
As soon as I changed that, it fired right up.
I’m having the same problem…I’ve created a new uploads directory, chmodded it (through SmartFTP) to 777, and I still get
“It doesn’t look like you can use the file upload feature at this time because the directory you have specified (/blog/uploads) doesn’t appear to be writable by WordPress. Check the permissions on the directory and for typos.”
Anyone have any other ideas? It was working fine on an original install, then I moved it and this is the only thing that broke from what I can tell. :-\