blackcatwhite

Found it! Turns out that the upload path was set incorrectly in Settings | Miscellaneous. I had not looked there before because I have never set anything there. But the “Store uploads in this folder” was set to “../../../../../../../../../../../../../tmp” (with even a few more ../’s).
Weird.
I put it back to the default (empty field) and now everything is working fine.
I know what you’re thinking. Somewhen I must have set the path for uploads. Well, I haven’t and why would I have set it to the path mentioned above?
Anyway, check this if you’re having problems. (You need to log in as admin to see the Settings menu item.)

Hi,
I still can’t upload images but thought I would add some more info. The upload process seems to do every thing except actually upload the image file itself. The image is listed in the Media Library and I can “Insert into Post” and the link shows up in my post. If I manually upload (via ftp) the image to the location specified in the link it displays in my post. (There is still no thumbnail in the Media Library, though.)
I have checked that the upload directory has correct rights (777) and tried different browsers (Safari, Firefox, Camino).
I’m using an iMac Core 2 Duo, WP is 2.7 and my ISP is LaughingSquid. Don’t know if that will help but I would really like to find a resolution.
Thanks in advance for any help.

Thanks for the suggestion — we’ve already tried that, and I just tried it again. I still get no picture.