I am having the same problem posting photos (on 1&1 shared server). Both the browser uploader and the flash uploader fail. The photos do end up in my uploads folder on the server, but I can’t do anything with them via the WordPress dashboard. I have been searching forums for help, but nothing has helped yet. Does anyone know of a fix or work around? I’m seriously starting to think about switching hosts.
Added note: I have also tried NextGen Gallery. This will upload photos, but I receive “http error” there when I try to perform any function on them such as creating thumbnails.
Thanks.