Upload error

[Blackhat]

When I choose a picture localy and clicks submit I get this message:

An error occurred while attempting to create a folder for your files. If the problem persists, please notify the webmaster

Not sure what the problem is because I have chmodded the folders (files & users) to 777

Edited: safemode is off

[Blackhat]

nevermind. I have somehow managed to insert a period instead of a slash in the server path :P