For the “Unable to create directory….” problem:
Check PHP settings for safe_mode, it should be “on”.
For the “The uploaded file could not be moved to…” problem:
Make sure that your PHP open_base_dir directive allows you access to the temp directory being used by WordPress.
These are both settings that can only be accessed at server level configuration. You will need to contact your web host or server admin to have them looked at or changed.
– Korske
