I had same problem (with WP 2.1.3)
1. make folder uploads in /wp-content
2. CHMOD to 666
3. remove space after ?>tag
But when i tried to upoad my files to /uploads, it said:
1. still same error (errno=13 – Permission denied) … wp-includes/functions.php on line 972
2. still same error ‘Warning: Cannot modify header information – headers already sent by (output started at /folders/wp-includes/functions.php:972)’
3. error in folders/wp-includes/functions.php on line 1221
Then i try to figure it out. Line 1221 in function.php is ‘header(‘Content-Type: text/html; charset=utf-8′);’
Unfortunately, there is no significant result till now. Then, I try downgrade it to WP 2.1.2 (like Jorasho said). The problem is gone.
Well, i hope there is another solution than downgrade for this problem ??