Moved to different host and now cant upload pictures

I moved my hosting today and everything went fine except when I tried to upload picture, I get this message:

The uploaded file could not be moved to /hsphere/local/home/xxxx/mysite.com/wp-content/uploads/2007/05.
Warning: Cannot modify header information – headers already sent by (output started at /hsphere/local/home/xxxxx/mysite.com/wp-admin/admin-functions.php:1965) in /hsphere/local/home/xxxxx/mysite.com/wp-includes/functions.php on line 1348

Any advise would be appreciated