I have teh same problem. I’m pretty sure it’s the godadddy managed hosting causing the problem.
Something that worked for me… I received the error when I tried to upload a new theme through the WordPress Upload function. Instead of using the built-in upload function, I unzipped the file and ftp’d it into the proper directory. The theme works.
And fyi, PhoenixFire2912… it was on a FatCow account.
