I had this issue before however, with support was able to fix the issue. This time, I also created a thumbs directory and increased the permissions to 777 yet I cannot upload an image still.
Here are the few facts I do have:
-Everything is up to date
-I am using WPMU
-Just uploaded the Edublogs theme today
I am seeking to upload images to the service headings. I prefer not to use the Featured/ Post option.