Originally Posted by Luciano
try to change the storage method in your settings / maintainance...
then upload a new image
Woah... you don't want to be changing the storage methods unless you know you have to.
Flipside, go into your ACP => vBa Gallery => Modify Settings and then verify that your various file paths (Gallery URL, Files Path, Files URL) are all correct. After that go into your /gallery/files folder and verify that not only is /gallery/files chmod'ed to 777 but also any folders that may happen to be inside of /gallery/files already.