I just checked php.ini and safe mod is OFF
allow_call_time_pass_reference = On |
; Safe Mode
safe_mode = Off
Are you sure its not off?
And yes the path is correct, and I just chmodded the data folder again by typing
chmod -R 777 data
Now what should I do? Should I go to "PhotoPost Database Administration " and run the following things? Like in the screenshot below http://img411.imageshack.us/img411/4913/picturesiy4.jpg