Okay, somehow it appears that the permissions in those directories (data and uploads) and perhaps all permissions on my website got reset to defaults. I gave permissions to those directories as you indicated...
Now instead of getting an error when I upload, it goes to "processing image...." then goes to a confirmation page. On the confirmation page a window pops up asking me to log into
www.skimonline2.com which is my website. If I log on the thumbnail pops up appropriately. If I do not log on I get a box with a red x in it.
Are there possibly some other directories that need special permissions or is this something else? Thanks.