Your php still shows to me your running with safe mode on which we already state in our requirements Photopost will not work with it on.
Your issue would be related to your server and your host how they have things configured. They most likely are on an image upload setting the filename to the full image path
If your host is requiring some type of special upload process or function most likely any files on your server would need to be modified to suit your servers requirements
You may need to contact your host about this