[Chuck S]

What does your host say about there server dropping file uploads?

The issue is simple. You can FTP a file to your uploads directory and it processes fine. If you try to HTTP upload a file to the uploads directory to process your server is dropping the file and not allowing the file upload hense there is nothing to process. There are no permissions errors and everything appears correct. This is happening at the server level. There interaction is needed here. Your gallery worked fine till they did something on the server on the data meantioned when things stopped working.