The uploaded file could not be moved to

I’m a newuser. Get message below whenever uploading a file:

The uploaded file could not be moved to /home/virtual/site96/fst/var/www/html/blog/wp-content/uploads.

102

I’ve ready many other entries on this topic and most mention modifiying CHMOD to 777 which I’ve done. I’ve also contacted hosting company (OLM.net) about permissions which they say are fine.

Any advice much appreciated.