set the wpseo folder to 777 and try again it will work if sever not allow to chnager permission delete the existing folder and create new folder wpseo and set permission to 777 , thats works for me .
no nothing helps i tried many things all possible things , lastly i had no option other then live with wordpress 2.6 , its working like air great.
the problem area is alloted memory from server administration . its specified in htaccess is 8mb even in php.ini 8mb and 2.8 needs more then that .
