Now a different error. I tried uploading again, and to my surprise it worked - 50 images from the bulk upload directory went just fine... so i tried to upload 10 more and got this in the middle of that batch:
Error creating thumbnail! Error code: 1
"/usr/bin/mogrify" -size 100x75 -quality 70 -geometry 100x75 '/home/laurie/public_html/photopost/data/501/1IMG_0011_001-thumb.jpg'