I noticed, as I tried to upload images from WordPress, that the images would not be in the correct directory. This is a problem with the default value of a setting under Miscellaneous inĀ Settings.
If you “wp-content” folder permission are correct (this depends on your server’s settings, mine required a temporary “chmod 777″), then you will find that the media uploader reports success, but the thumbnail is not loading, and the file path is incorrect.
Right now I am using WordPress 2.8.4. The text in the “Store uploads in this folder” box was “wp-content”, although just to the right it says the default is supposed to be: “wp-content/uploads”. Using this value unmodified results in the actual file being uploaded to “wp-content”, but the database information on the file lists it as “wp-content/uploads”, even though no “uploads” folder existed.
Changing the value to “wp-content/uploads”, the so-called default, fixed the problem:
After changing that, then attempting to upload, the “uploads” directory is created and the file is placed correctly in it. After that, you can change the permissions on wp-content back to whatever they were. The change in permissions is only for the creation of the uploads folder.

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